DETROIT -- (TheStreet) -- An apparent start to a housing industry recovery pushed pickup truck sales up 16% in August and has Ford (F) and GM (GM) confident that the gains can continue.
"Housing is probably along with autos the brightest spot in the economy," Kurt McNeil, GM U.S. vice president for sales operations, said Tuesday on the company's August sales call. He said August pickup truck sales rose to 10.9% of GM total sales from 10.4% in July, and GM expects a rise to nearly 12% in the remaining portion of the year.
Historically, pickup truck sales and the housing market are closely correlated because when the housing market is growing, workers in the industry -- such as contractors, roofers and plumbers -- buy new trucks. Moreover, pickup truck sales make seasonal gains in the second half of the year. In fact, September is "truck month," when truck marketing increases. "We are at an inflection point," McNeil said. "September favors higher truck sales."