Auto sales to dip in most provinces, led by Ontario’s 3.1% drop, Scotiabank says


Pullback pass on end five-year growth string that included a record high 2.04 million channels sold in 2017

The Canadian Press Posted: Feb 23, 2018 10:36 AM ET Last Updated: Feb 23, 2018 11:25 AM ET

Scotiabank says that slower job creation and weaker rallies in household wealth will likely contribute to softer Canadian exchanges of cars and light trucks this year.

That would put an end to a five-year terms of growth that included a record high 2.04 million conduits sold in 2017.

Scotiabank doesn’t forecast much of a pullback in 2018 — with projected tradings still expected to be above two million units nationally.

“Accelerating sacrifice increases for new cars and light trucks have reduced new vehicle affordability to the lowest knock down of the past decade and will likely also weigh on purchases, remarkably as real income gains soften from last year’s sound performance,” the report says.

Scotiabank expects most of the decline to be concentrated in Ontario, with discharged sales expected to decline 3.1 per cent to 821,000.

The bank says affordability is an outflow in Ontario, where the savings rate is 80 per cent below the jingoistic average.

Most of Canada’s other regions will see smaller worsens in vehicle sales or little change compared with last year but Scotiabank guesses Alberta to show a small advance in 2018 due to improved employment plains and business purchases.

with files from CBC News

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