As credit unions brace for a turnaround in new auto lendingactivity this year, more signs are in the air that vehicles salesare up.

The latest Macro Data Flash Report from NAFCU showed thatvehicles sales started 2010 as they had ended the last one,continuing on a slow but steady upward trend. Sales in Januarybenefited from rising consumer confidence, improving access tocredit, the release of pent-up demand, the introduction of newmodels and modest increases in incentive spending, according to thereport.

While vehicle manufacturers depended heavily on fleet sales atthe beginning of last year, sales to retail consumers are nowdominating the vehicle market, according to NAFCU, and the recentrise in gasoline prices has not had an impact on light truck salesyet.

Still, the ongoing protests in various countries in the MiddleEast have the potential to cause much stronger rises in gasolineprices, which would eventually also impact buyer behavior, theflash report read. Vehicle sales are expected to continue on theslow recovery path that started in 2010 throughout this year.