Strong auto sector rebound probably largely in the past

The rebound in global auto production and sales over the past year has been partly responsible for the better-than-expected activity data over the past several months. And with auto sales in most advanced economies still well below pre-virus levels, there is still some scope for a further recovery as pent-up demand is met. But several indicators suggest that demand has weakened amid the sharp rise in borrowing costs, meaning that the auto sector may not provide a boost to GDP for much longer.