As reported by Reuters, CSM Worldwide, an industry tracking firm, has predicted that auto sales in the United States will rise by one-fifth in 2010, reaching 11.8 million units. The forecast, predicated on the notion that the worst of the economic downturn has passed, is an increase of 600,000 units over CSM's previous estimates. If sales do reach 11.8 million units, the numbers would be the first year-on-year increase for light vehicles in the U.S. since 2005.

Specifically targeting the first quarter of 2010, CSM said the industry's recovery would be driven by improved consumer confidence as key economic indicators like unemployment rates bottomed out. Joe Barker, an analyst with CSM said, "The move reflects cautious optimism that we will see gradual improvement in core market fundamentals following the first quarter of next year."

For its part, J.D. Power and Associates kept its 2010 forecast for U.S. auto sales at 11.5 million units, but did point to "strong signals" that the market had reached bottom and was turning. Jeff Schuster, an analyst with J.D. Power said, "I think the signals are strong but we are not fully out of it (slump) yet. Given what we have been through, we prefer to remain cautious."

Auto firms base their plans for future production on these kinds of forecasts and currently the industry is preparing to increase output, believing that sales are beginning a gradual, but definite recovery.