FRANKFURT (MNI) – Eurozone passenger car registrations, excluding
Cyprus and Malta, were lower on the year both in July and August,
largely reflecting the base effect of last year’s scrapping premia, data
from the European sector association ACEA revealed Thursday.

In August, the EMU14 saw 15.7% fewer passenger cars registered than
one year earlier. For July, the annual total was -21.4%.

The EU15, which includes Sweden, the UK and Denmark, but not
Slovakia and Slovenia, saw registrations fall 14.1% in August and 19.1%
in July.

Among major Eurozone countries, German registrations fell by 27% in
August and 30.2% in July, reflecting the base effect of last year’s
buying binge tied to Germany’s scrapping premium.

Given that the premium had nearly been exhausted by last September,
registrations may begin to normalize going forward.

French registrations were down 7.9% in August and fell 12.8% in
July. Registrations there will likely also wane as the government again
cut its scrapping premium by E200 at the beginning of July. Still,
dealer discounts may support sales going forward.

Spanish registrations were down 23.8% on the year in August and
decreased 24.1% on the year in July. The recent end of Spain’s subsidy
program, along with the country’s still-dismal labor market, will likely
weigh on new car sales in the months ahead.

Consumer sentiment data suggest that confidence in Germany is
recovering. “There are currently good indications that consumer
sentiment in Germany is experiencing a sustained upward trend,” consumer
research company GfK said.

“Provided the environment remains this positive, private
consumption can be expected to contribute its part to the strong
recovery of the German economy this year,” GfK added.

Private consumption contributed 0.3 percentage point to Germany’s
Q2 GDP. The sentiment indicator “major purchases at present” was above
its long-term average for Germany in August for the third straight
month, according to the European Commission’s monthly consumer survey.

By contrast, this indicator is below its long-term average in Spain
and France, suggesting continued weakness in the consumer durables’
sector ahead.

— Frankfurt bureau: +49-69-720 142; email: frankfurt@marketnews.com —

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