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Car industry buoyed by stronger sales

04/09/2009

Car registrations increased by 6.0% in August compared to the same month last year.

Some 67,006 cars were sold during the month, up from 63,225 in August 2008. The increase marked the second consecutive month of improved sales, after a 2.4% rise in July.

Releasing the figures, the Society of Motor Manufacturers and Traders (SMMT) said that there was further outlook for growth in September with the arrival of the new "59" number plate prefix. It added that while August typically accounts for just 3.3% of annual car sales, September sales on average made up 17.0%.

While August's figures far exceeded expectations - a forecast 6.0% decline - the society warned that sales in the month remained 15.0% below the 1999-2008 average.

SMMT chief executive Paul Everitt described the month's figures as "welcome news for the UK motor industry", but added that "with consumer and business confidence still fragile, there remain significant risks ahead".

"It is essential that these early signs of recovery are sustained into 2010," he said.

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