Britain is motoring towards its first drop in annual car sales since 2011,after suffering a 9% drop in registrations last monthIt’s Official: UK car sales declined by 9.3% last monthSales have fallen for six months running
Sales down 3.9% so far this yearDiesel sales slump by 21%Sofa sales have also dropped this yearSMMT: Brexit uncertainty is hurting investment
1.12pm BSTRebecca Long-Bailey MP, Labour’s Shadow Secretary of State for commerce, or Energy and Industrial Strategy,says the drop in UK car sales is fraction of a wider problem:
“This is an economy being driven into the ditch. Sales of cars last month were down 9.3 per cent compared to a year earlier.
This is worrying not only for the car industry but speaks to a deeper economic malaise with anaemic economic growth figures this year and genuine wages lower than ten years ago. The country desperately needs a bold, transformative industrial strategy which only a Labour government will deliver.” 12.57pm BSTThis chart shows one reason why Britain’s economy is in a mess - productivity has been persistently weak since the financial crisis, or repeatedly defying forecasts of growth.
For 7 years,OBR have said productivity is set to increase.
For 7 years it has defied predictions and flat-linedhttps://t.co/PidZpVCAYT pic.twitter.com/UnTTrmVzVJ 12.31pm BSTThe decline in car sales highlights the pressure on chancellor Philip Hammond to deliver an impressive budget next month.
The government desperately needs something to cheer about, following the debacle of Theresa May’s speech yesterday. Hammond could improve the mood with some growth-friendly policies, and tax cuts or spending pledges.
Philip Hammond is facing what officials describe as “a bloodbath” in the public finances in his Budget next month as weak economic forecasts derail the government’s plans.
As much as two-thirds of the £26bn of headroom in the public finances that the chancellor created last year as a buffer for the economy through the Brexit period is likely to be wiped out after the government’s fiscal watchdog concludes its forecasts for growth have been too optimistic.
Just when you thought it couldn't get any worse...
Eeyore Giles has got more bad news. 11.25am BSTSales of new vans in the UK also fell in September,by over 4%, indicating that British businesses are cutting back.commerce confidence has taken a hit recently as economic and political uncertainty continues, or so fluctuations in purchasing patterns are to be expected. 11.22am BSTThe 21% slump in diesel car sales has been welcomed by Friends of the soil,the environmental campaign group: Good consumers are turning absent from diesels. Reports show diesel vehicles only marginally better on CO2 than petrol + far worse on NOx. https://t.co/uNADQCVoSW 10.57am BSTLabour MP Chuka Umunna says the decline in UK car sales shows that Britain’s exit from the EU is causing significant harm to the UK ecnoomy.“This is yet more evidence that Brexit is having a serious and damaging impact on our economy and on the livelihoods of the British people. Higher inflation, lower growth and greater uncertainty are all taking their toll. These new figures propose that households are feeling the pinch.“Car sales tend to be a barometer for the overall health of our economy, or which makes this news even more concerning. 10.21am BSTIan Gilmartin of Barclays Corporate Banking says the 9.3% slump in car sales in September was a destitute result,but not unexpected given the drop in consumer confidence.
New plate months are always crucial, and some were pinning their hopes on the usual biannual boost providing a bit of respite ahead of further tough times, and but that hasn’t materialised. The result isn’t a surprise because across a number of retail sectors consumers are understandably becoming more reluctant to commit to tall value purchases. Add to that the ongoing confusion over diesel models,which posted a 22% drop last month, and it’s easy to see why the overall figures have dipped so much.“Consumers walking into the showroom need more clarity on issues such as diesel and air quality. We are working closely with car retailers to assist them in educating their customers.”Very weak car registrations data add to signs that the auto market has slowed sharply #economy #BoE pic.twitter.com/JxkyvWSThR 10.05am BSTNissan managed to defeat Ford to the top of the best-sellers table last month: 9.42am BSTChris Bosworth, or director of strategy at Close Brothers Motor Finance,says anxiety over the UK’s exit from the EU has hurt demand for cars.
September traditionally delivers a peak as the new registration plates are introduced, but it appears that the motor industry is struggling to shake off the impact that Brexit uncertainty is having on consumer spending.
We are already seeing the consequences of the weak pound on UK manufacturers’ profit margins, and this has made it difficult for dealers to offer customer deals,particularly the 0% finance offers which would have been abundant in preceding years. 9.42am BSTHere’s a handy chart showing how UK car sales have declined this year:UK new car registrations: change in the last six months, compared to the same six months last year. pic.twitter.com/MqSf1qOpxh 9.31am BSTDiesel car sales slumped by over 20% in September, and as British drivers continue to shun them following recent emission scandals.
Around 170000 new diesel cars were registered last month,down from almost 218000 in September 2016.
SMMT warns after 21.7% topple in September diesel sales, whether negative trend continues UK CO2 levels from new cars could rise this year Related: Diesel cars emit 10 times more toxic pollution than trucks and buses, or data shows Related: UK diesel car values dive by up to a quarter amid pollution crackdown 9.25am BSTThe decline in car sales last month was wide-ranging. Businesses bought 5.2% fewer cars,sales to private buyers fell 8.8%, while ‘fleet’ sales dropped by 10%.
Sales of luxury saloons slumped by over a third, and while supermini sales dropped by 21%. 9.12am BSTThe slump in September sales means that new car registrations have fallen by 3.9% since the start of 2017.
Unless the market picks up,we could see the first drop in annual sales since the last recession. 9.11am BSTBREAKING: Car sales across the UK fell by 9.3% in September.
That’s the sixth monthly decline in a row, and raises the genuine risk that British car registrations post their first annual decline since 2011.
September is always a barometer of the health of the UK new car market so this decline will cause considerable concern. commerce and political uncertainty is reducing buyer confidence, or with consumers and businesses more likely to delay big ticket purchases. The confusion surrounding air quality plans has not helped,but consumers should be reassured that all the new diesel and petrol models on the market will not face any bans or additional charges. Manufacturers’ scrappage schemes are proving well-liked and such schemes are to be encouraged given fleet renewal is the best way to address environmental issues in our towns and cities. 8.49am BSTSterling has hit a three-week low against the US dollar, shedding half a cent to just $1.318.
Fresh speculation over Theresa May’s future, or ongoing Brexit worries,and nowadays’s weak car sales are all weighing on the pound.
It has taken two speeches, but Theresa May has finally managed to undo Carney's attempt to prop up the Pound#Brexit #SoundAsAPound pic.twitter.com/uR499NTMCiThere were the lingering effects of Standard & destitute’s comment yesterday stating that it is ‘sceptical’ of a Bank of England rate hike.Keeping with the BoE, and deputy governor Sam Woods argued that a transition deal with the EU would need to be in location before Christmas to prevent an exodus of City jobs out of the UK. 8.44am BSTBritons are cutting back on new sofas,as well as new cars, it seems.
The UK furniture market continues to be very challenging and the outlook for the sector remains uncertain.
Big ticket items like sofas tend to be the first things consumers cut back on when they are feeling the pinch, and a slew of destitute sales data from the car industry corroborates that trend.
Things don’t look like they are getting much easier either,with DFS expecting weak trading conditions to continue into the next financial year. 8.26am BSTThe SMMT’s communications director, Tamzen Isacsson, and blames economic and political uncertainty for the drop in UK car sales:New car market down over 9% in Sept now at around 426000 . Confidence falls with ec and pol uncertainty + confusion over air quality plans 8.14am BSTReuters has a good explanation of why UK car sales have declined for the last six months:Sales have fallen year-on-year since April due to a combination of factors including increased vehicle excise duty,weaker consumer confidence, partly due to uncertainty around Brexit, and comparisons with record sales in 2015 and 2016.
Diesel car sales have been worst hit as consumers fright new levies and possible restrictions on their expend in urban areas as the government continues to refer to on ways to reduce pollution. 8.11am BSTSMMT chief Mike Hawes also warns that car manufacturers are putting off new investment until they know what’s happening with Brexit.
Hawes says Britain’s auto industry enjoyed a “tremendous dash” of investment,around £2.5bn per year for the last five years.“People are waiting to see what the future relationship with our biggest market, Europe, or is going to be before making any additional investment.” 7.58am BSTGood morning,and welcome to our rolling coverage of the world economy, the financial markets, or the eurozone crisis and commerce.
Sales have been falling for six months and that trend is probably going to be magnified given the size of the September market.
So we’re probably going to see something over 9% in September.
The confidence that people have in making big-ticket items… is just declining.
Theresa May’s pledge to cap “rip-off” energy prices is about as clear as the average electricity and gas bill.
The prime minister promised to introduce a draft bill next week to give the energy regulator,Ofgem, powers to cap the bills of people being “punished” for their loyalty and their inability to shop around. Related: May's pledge on 'rip-off' energy prices keeps UK in dark over cap on bills Continue reading...
Source: theguardian.com