As discussed in an earlier post, new car purchases can be a useful, timely economic indicator. Figure 1 below shows the statewide number of new car registrations from January 2018 through May 2026. This is a good proxy for the number of cars purchased by California residents.
After Half-Year Slump, Strong Growth in May. Seasonally adjusted new car registrations dropped 8 percent from September 2025 to December 2025, then declined an additional 2 percent from December to April. In May, however, registrations grew nearly 7 percent—the strongest single month since December 2024.
Californians Still Buying Fewer Cars Than Before the Pandemic. Statewide new car registrations declined steadily for several years leading up to the COVID-19 pandemic. Like many other measures of economic activity, registrations plummeted in March and April 2020. Registrations rebounded substantially in the subsequent months but generally have remained below pre-pandemic levels. For example, registrations in May 2026 were 6 percent lower than in May 2019.