US light vehicle sales are expected to remain steadfast in August but are showing early signs of a slowdown, S&P Global Mobility said on Monday (Aug 28), amid contract negotiations with workers and rising interest rates.

New light vehicle sales in August are estimated to be 1.34 million units, up 18 per cent year over year, according to the sector-focused report.

“Rising interest rates, credit tightening and new vehicle pricing levels slowly decelerating remain pressure points for consumers,” said Chris Hopson, principal analyst at S&P Global Mobility.

The automotive research company also lowered its annual forecast to 15.2 million units of new light vehicles estimated to be sold in the US from sales of 15.7 million units projected in July.

Supply of vehicles could be disrupted in North America as negotiations with labor unions have been heated up lately, the report added.

United Auto Workers on Friday said members voted overwhelmingly in favour of authorising a strike at the Detroit Three automakers if an agreement is not reached before the current four-year contract expires on Sep 14. REUTERS

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