Employment growth, improving confidence and financial conditions drive gains

TORONTO, Aug. 2, 2013 /CNW/ - Global car sales advanced 4% in the first half of 2013 and will climb to a record high this year, according to the latest Scotiabank Global Auto Report.

"Reduced headwinds emanating from Western Europe and a renewed focus on global job creation offset the recent moderation in the pace of economic growth in the emerging markets of Asia and South America," said Carlos Gomes, Scotiabank's Senior Economist and Auto Industry Specialist. "We expect continued gains in the second half of the year supported by low short- and long-term interest rates around the world, strengthening global job creation and improving financial market conditions which have propelled several equity market indices to record highs."

Highlights in the report include:

• China leading gains in global auto sales this year, with purchases of cars and crossover utility vehicles (CUVs) accelerating 20% year over year in the first half of 2013, more than double the full-year 2012 increase of 8%.      
• Throughout North America, purchases are moving steadily higher with passenger vehicle sales (cars and light trucks) in Canada on target to climb to a record high in 2013.
• The sales trend has started to stabilize in Western Europe - the third largest auto market behind China and the United States.
• The Brazilian auto market had been a source of strength through the spring, with car sales climbing to record highs through May. However, purchases have recently lost momentum in the face of high inflation and rising interest rates.

Read the full Scotiabank Global Auto Report at http://www.scotiabank.com/ca/en/0,,3112,00.html.

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SOURCE Scotiabank - Economic Reports