CURRENT economic uncertainty, and increasing household costs mean that many consumers may be taking a ‘wait and see’ attitude on all major purchases, believes the NFDA.
Commenting on the news new car sales have dropped, Sue Robinson, Director of the RMI National Franchised Dealers, said: ‘The growth in some new car segments shows that there is still a lot of life in the new car market.
‘However there is some concern that, with inflation on the rise and consumers reviewing their debt status, household spending may need some further stimulation.’
The SMMT’s figures show new car sales dropped 3.5 per cent in May to 179,272 units, but the mini segment saw a 120 per cent increase during the month.
Yesterday also saw the Bank of England announce that the interest rate will remain at 5 per cent.
‘It’s good to see that the Bank of England has taken a cautious view on interest rates, and held the rate for June, ‘ said Robinson. ‘This will allow the most recent cut in interest rates to take effect. But a further cut in interest rates would help business and consumers alike.’
