U.S. vehicle sales up despite higher fuel cost

Sales of new vehicles in the U.S. rose an estimated two per cent in May as low unemployment and strong consumer confidence helped mitigate the impact of rising interest rates and fuel prices,

executives said on Friday.

Memorial Day weekend sales also bolstered retail auto deliveries, carmakers said.

“The U.S. economy remains on a favourable trajectory,” said Ford chief economist Emily Kolinski Morris.

Sales in May, including those to commercial and fleet customers, dipped to a seasonally adjusted annual rate of 16.91 million, down from 17.17 million in April, according to Autodata.

Ford estimated full-year industry sales could fall slightly to around 17 million, as automakers trim low-margin sales to fleet buyers and deal with an influx of used cars coming off lease.

Last year, U.S. auto sales dropped two per cent after a record high of 17.55 million in 2016.

said on Friday its U.S. sales in May climbed 11 per cent to 214,294, on the strength of retail deliveries to individual customers. The automaker said retail deliveries of 167,785 vehicles were the highest since July 2005.

Ford said retail sales were 163,796, while total sales, including those to fleet customers, rose 0.7 per cent to 242,824.

Ford said sales of its bestselling F-series pickup were up 11.3 per cent to 84,639. Fiat Chrysler said its Jeep brand sales jumped 29 per cent to a record 97,287.

the No. 1 U.S. automaker, no longer reports monthly sales. Analysts estimated GM sales rose about 10 per cent in May.

reported a 3.1-per cent year-toyear increase in May sales, to 153,069.

said sales dipped 1.3 per cent to 215,321, while

was down 4.1 per cent to 131,832.

U.S. auto sales have been bumpy this year — down in February, up in March, down again in April — as consumers continue to shift away from sedans to trucks and SUVs, which are generally more expensive and generate higher profits.