J.D. Power Lowers Auto Sales Forecast for 2012

[Javaman]

http://www.cnbc.com/id/44993066

The risk of a double-dip recession caused J.D. Power and Associates to lower its 2012 U.S. auto sales forecast by about 2 percent, which would still be a modest rise over expected 2011 sales, the consultancy said Friday.

"The risk of a double-dip recession has increased to nearly 40 percent, driving the reduction in the forecast for 2012," said Jeff Schuster, executive director of global forecasting at J.D. Power.

Schuster said J.D. Power a few months ago rated the risk of a double-dip recession in the low range of 30 percent to 40 percent and recently raised that to nearly 40 percent.

Probably the most important factor that will determine whether another recession occurs in 2012 is employment, which will greatly impact consumer confidence and vehicle demand, he said.

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