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WASHINGTON, D.C. — Auto sales climbed throughout the country, although a few of the 12 Federal Reserve Districts have seen the upswing slow down, according to latest Beige Book report. 

The report also indicates that some areas have experienced vehicle demand that is stronger than the speed of production, and this has affected dealers.

"Vehicle sales also rose, but the rate of increase reportedly slowed in May in the New York, Cleveland and San Francisco Districts," officials noted.

They added that "several districts reported that auto production was failing to keep up with demand, pressuring already lean auto dealer stock."

The Fed broke down how dealers are faring across the nation, beginning with the First District.

Boston

Although not citing any auto-specific information, the Fed noted that sales for big-ticket items — which would include vehicles — are rather soft. Retail contacts, in general, in the area expressed worries about late-year sales but were "cautiously optimistic" about the near future.

"All respondents mention weak sales for big-ticket items, but say that sales of core consumables, household items, or clothing are strong," the Fed explained. "Most contacts are cautiously optimistic regarding the next few months, but express concern about sales later in the year."

New York

After a rather promising April in the Second District, things appear to have calmed down a bit for auto dealers in May with sales slowing.

In fact, in the Rochester, N.Y., area, April sales were up as much as 25 percent from weak year-ago figures. In May, dealers saw more "mixed" results, with reports of slower demand for Big 3 vehicles.

"Dealers in the Buffalo area report that sales remained strong in April, rising nearly 10 percent from a year earlier, but that they cooled in May and were modestly lower than in May 2009," officials shared. "Auto dealers in both areas report recent improvement in both retail and wholesale credit conditions."

Philadelphia

Auto sales were on the upswing in the Third District during April and May, and dealers see the sales rate improving "somewhat" in coming months.

"Third District auto dealers reported a rise in sales in May compared with April and with May of last year," the Fed pointed out. "They said a shortage of popular models has limited the advance in sales, but they expect manufacturers to increase production soon. Dealers expect sales to continue to move up through the rest of the year."

Cleveland

Moving over to the Fourth District, vehicle sales have climbed modestly, with dealers reporting that used sales, in particular, have being "doing well."

From mid-April to mid-May, new-vehicle sales were up from the previous 30 days and the prior-year period.  The degree of increases had a wide range, officials noted.

"Overall, dealers are cautiously optimistic and expect slow, steady sales growth through the summer months," the Fed shared.

As far as supply trends, things appears to be "mixed."

"Half of our contacts said they need more cars on their lots, while others noted that inventories are in line with sales. Contacts also said that buyers are finding it easier to obtain financing from banks, credit unions, and captive financing companies," officials noted. "Reports show little change in staffing levels at retailers or auto dealers."

Richmond

The Fed reports that the auto market has shown an uptick in recent weeks in the Fifth District, with dealer orders in some areas outpacing the speed at which OEMs can fill them.

"Auto dealers in West Virginia and South Carolina also reported a pick-up in sales and said that manufacturers have not been able to gear up fast enough to keep up with dealers' orders for domestic and foreign nameplates," officials noted.

Atlanta

In the Sixth District, sales have climbed from soft levels in 2009. Import brands appear to be faring the best.

"Vehicle sales increased from weak year-ago levels, with foreign brands experiencing the strongest demand," the Fed stated.

Chicago

Moving along, the market showed improvement in the Seventh District, as well. Specifically, the Fed noted: "Auto sales also continued to rise as buyers returned to showrooms to take advantage of favorable price and credit terms."

St. Louis

April and early May sales in this market, on average, showed increases. The Fed indicated that sales climbed for roughly 64 percent of surveyed dealers. Sales were down for 9 percent and remained static for 27 percent.

Roughly one-third said used sales showed increases that reflected new-car gains. Conversely, 29 percent said the opposite trend occurred. 

"Also, 25 percent reported an increase in high-end vehicle sales relative to low-end vehicle sales, while 13 percent reported the opposite," officials shared.

"About 38 percent of contacts reported more acceptances of finance applications, but 17 percent reported more rejections," the Fed stated. 

Meanwhile, roughly half of respondents believed they didn't have enough vehicles on their lot — mainly new vehicles — and 8 percent felt they had too much inventory.

"The sales outlook among the car dealers for this summer was generally optimistic. About 67 percent of the car dealers expect sales to increase over 2009 levels, but 12 percent expect sales to decrease. The remaining 21 percent expect sales to be similar to last year," they added.

Minneapolis

Reporting on how dealers are faring in the Ninth District, the Fed reported strong results in some areas.

"Automotive dealers in the Minneapolis-St. Paul area reported that car sales and maintenance and repair business were up from a year earlier," officials shared. "April new-car sales were up significantly higher from March in Montana and the Upper Peninsula of Michigan, but were down slightly in western Wisconsin."

Kansas City

Continuing on to the 10th District, used-vehicle demand helped to boost sales and allow dealers to clear inventory. Moreover, some dealers are optimistic about the impact of greater confidence among consumers.

"Auto dealers reported strong demand for used vehicles, which helped boost auto sales and reduce vehicle inventories," the Fed shared. "Some contacts felt rising consumer confidence would encourage future auto sales."

Dallas

According to the Fed, auto sales have shown improvement here, and dealers anticipate a steady upswing in demand as the year progresses.

"Automobile dealers said sales ticked up since the last report. Inventories remain lean," officials noted. "Prices have been inching upward due to some pullback in incentives introduced earlier. Contacts expect demand will gradually improve through the end of the year."

San Francisco

Finally, in the 12th District, there was a slight gain in new-vehicle sales, but lately, there has been a drop in demand.

"Sales of new automobiles improved a bit further during the reporting period, although contacts cautioned that demand has slipped somewhat in recent weeks," the Fed stated.