Car and truck purchases at lowest in over 3 years

By AutoFOXBusiness

Dancing robots building cars

FBN's Charles Payne on Spanish automaker SEAT showing off how the robots in its factory work together to build cars.

U.S. durable goods orders fell by 0.6% in May following a revised 1% decline in April, according to the latest government report. Analysts surveyed by Thomson Reuters forecast a 1% decline. Durable goods are items expected to last three years or longer.

Continue Reading Below

The drop was fueled by the biggest drop in new orders for cars and trucks since 2015. Orders for autos and parts shrank 4.2% in May, the biggest drop since the first month of 2015. Demand for cars can be fluctuate from one month to the next. May’s fall comes after orders for motor vehicles increased by 1.2% in April

Motor vehicle sales fell by 10.2% in the January-March period from a year earlier, according to our partners WSJ Markets Data Group.

For those on the sidelines when it comes to buying an imported car, now may be the time. The average price of imported cars could increase by $5,800 if the 25% tariff goes through, according to analysis of U.S. Department of Commerce data. Nationwide, this tariff would hit American consumers with a tax of nearly $45 billion, based on 2017 auto sales. Further, costs to maintain imported vehicles could increase if tariffs are applied to imported auto parts.