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Auto Industry Cyclicality: Difference between revisions
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Forum Discussion: https://forum.investmentwiki.org/t/automotive-industry-cyclicality/316/2 | |||
The auto industry is also known to be cyclical, as car purchases can be easily delayed when households and businesses are short of cash. Figure 2 shows that the '''industry typically experiences greater volatility during recessions than real GDP.''' On average, '''real motor vehicle output has fallen nearly 12 times more than real GDP during downturns'''.<ref>https://www2.deloitte.com/us/en/insights/economy/spotlight/automobile-impact-us-economy.html</ref> | The auto industry is also known to be cyclical, as car purchases can be easily delayed when households and businesses are short of cash. Figure 2 shows that the '''industry typically experiences greater volatility during recessions than real GDP.''' On average, '''real motor vehicle output has fallen nearly 12 times more than real GDP during downturns'''.<ref>https://www2.deloitte.com/us/en/insights/economy/spotlight/automobile-impact-us-economy.html</ref> | ||
[[File:US164922 Figure2.jpg|center|thumb|540x540px|https://www2.deloitte.com/us/en/insights/economy/spotlight/automobile-impact-us-economy.html]] | [[File:US164922 Figure2.jpg|center|thumb|540x540px|https://www2.deloitte.com/us/en/insights/economy/spotlight/automobile-impact-us-economy.html]] | ||