U.S. auto sales outlook rosier

An automotive consulting firm is raising its forecast for 2010 U.S. auto sales, saying improved employment and auto lending numbers should translate to higher sales.

CSM Worldwide raised its forecast today from 11.2 million vehicles to 11.8 million vehicles. Sales at that rate would represent the first year-over-year increase in U.S. vehicle sales since 2005, when automakers sold 16.9 million vehicles.

CSM said it expects unemployment to peak in the first quarter of next year, then slowly improve throughout the year. Consumer confidence will grow as household finances and auto lending show improvement by the third quarter, the Northville-based company said.

By the fourth quarter, CSM forecasts the annualized vehicle selling rate will be 13.6 million vehicles. That rate shows what sales would be if they continued at the same pace for a full year.

CSM’s U.S. sales forecast for 2009 remains unchanged at 10.1 million units, down 23% from 2008. – Freep

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