U.S. Vehicle Sales (May 2026)

U.S. Vehicle Sales Stable in May

• U.S. vehicle sales rose 0.4% month on month (m/m) to 16.1 million (annualized) units in May, coming in slightly above consensus expectations for 16.0 million units.
• Unadjusted sales volumes were 1.47 million units – 0.4% above May 2025 levels. The average daily selling rate (DSR) was 58,651, coming in above the year ago level of 56,195. 
• Passenger vehicle sales were down 2.4% year on year (y/y) while sales of light trucks were up 0.9% y/y. Light trucks accounted for 83% of last month’s sales, roughly equal to their year ago share.   

Key Implications

• Vehicle sales remained stable in May despite a confluence of headwinds that continued to erode vehicle affordability for buyers. The national average price of gas was $4.50/gallon in May – a level unseen since mid-2022 – which likely helped to keep real average hourly earnings in contraction territory for a second consecutive month. Moving forward this influence may wane in June with the price of gas recently falling to roughly $4.25/gallon, but a permanent resolution of tensions in the Middle East would be required to sustain this trend.
• Energy prices and interest rates both remain elevated relative to the start of the year, which continues to weigh on consumer demand. Their impacts have been partially offset by strong tax refunds and financial asset returns, so if a resolution to the Middle East conflict is achieved over the near-term, we would expect sales to continue to trend near 16 million units for 2026. However, downside risks will grow if a resolution remains elusive into the second half of the year.

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