According to the results of our survey, demand for replacement tires increased in December. Indeed, from a volume standpoint the dealers reported they sold 0.8% more tires in December on a year-over-year basis, following a 0.6% increase in November and a 0.1 % increase in October. We are encouraged by the fact that demand trends are holding strong, although they are down slightly from what we saw at the peak of summer s heat, which is likely due to a lack of harsh winter weather and a tough comparison from 2014. In light of the recent strength in demand trends, we continue to believe the abundance of pent-up demand should lead to decent volume growth throughout 2016, despite the fact 2015 provides tough comparisons. In fact, demand has increased on a year-over-year basis for 21 of the past 22 months, according to the dealers surveyed. Furthermore, most dealers stated they anticipate trends to improve throughout the next three months of this year. Until next time, keep the tires rolling out the door.
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