Connect with us

Global Banking and Finance Review is an online platform offering news, analysis, and opinion on the latest trends, developments, and innovations in the banking and finance industry worldwide. The platform covers a diverse range of topics, including banking, insurance, investment, wealth management, fintech, and regulatory issues. The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website. .

Top Stories

Rising Gasoline Prices – A Minor Setback for Consumer Spending: Scotiabank Economics

http://www.gbm.scotiabank.com/scpt/gbm/scotiaeconomics63/GAR_2018-05-31.pdf

In his last Scotiabank Global Auto Report before his retirement on June 1, 2018, Senior Economist Carlos Gomes shares his auto industry insights.

Despite rising gasoline prices, global auto sales have gained significant momentum in April. Volume growth accelerated in most regions and sales rose 6.5% year-over-year, up from a 2.3% year-over-year increase during the first quarter.

“US gasoline prices are approaching a level similar to prices that prevailed in the final months of 2007, as the previous global economic expansion was coming to an end,” said Carlos Gomes, Senior Economist and Auto Industry Specialist, Scotiabank. “However, the recent increase is likely to have limited impact on consumer spending in the United States and around the world, as household incomes are accelerating in most regions and balance sheets continue to improve.”

A 20% increase in gasoline prices this year absorbs only about 8% of the projected increase in US incomes in 2018.

Canada was a notable exception to the improving global sales trend in April, with purchases edging down year-over-year for the second consecutive month, and falling below an annualized two million units for the first time since December. The decrease was broadly-based, with volumes declining below a year earlier in most provinces except for Manitoba, which had sales rise 19% above a year earlier in April, bolstered by sharp gains in business purchases.

Sales increased in all other major markets last month. US purchases remained above an annualized 17 million units in April for the eighth consecutive month, supported by a 9% year-over-year jump in commercial volumes due to an improving economic outlook and strengthening business confidence. South America posted the largest increase, with sales surging 27% year-over-year, but Asia and Eastern Europe also reported 11% year-over-year gains.

In China, the world’s largest vehicle market, auto sales went up to 12.6% year-over-year last month, the largest advance since February 2017. This is being driven by strengthening household wealth, near-record consumer confidence and stronger-than-expected industrial activity and housing prices.

Other highlights:

Half of the countries in Western Europe reported double-digit year-over-year sales gains in April – the best performance of the past year.
The impact of rising gasoline prices will be proportionately larger on Canadian households compared to the US, as prices are higher and gasoline absorbs a higher share of household income.

Read the full Scotiabank Global Auto Report online at:

http://www.gbm.scotiabank.com/scpt/gbm/scotiaeconomics63/GAR_2018-05-31.pdf

Global Banking & Finance Review

 

Why waste money on news and opinions when you can access them for free?

Take advantage of our newsletter subscription and stay informed on the go!


By submitting this form, you are consenting to receive marketing emails from: Global Banking & Finance Review │ Banking │ Finance │ Technology. You can revoke your consent to receive emails at any time by using the SafeUnsubscribe® link, found at the bottom of every email. Emails are serviced by Constant Contact

Recent Post