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Slump in New Car Sales in May Raises Specter of US Recession


Slumping US new car sales in May on continued high prices and low inventories have some analysts worried those lower-than-expected results could be a harbinger of a broader economic downturn.

Sales of new cars last month fell to 12.8 million vehicles at a seasonally adjusted annualized rate, representing an 11% drop from April, according to data compiled by Wards Intelligence. That is the lowest level since December and reflects shrunken inventories amid a persistent shortage of semiconductors and near record-high vehicle prices.