FRANKFURT (MNI) – German new car registrations fell back sharply in
July, after a one-time rise in June, the carmaker association VDIK
reported on Thursday, suggesting that the Eurozone crisis may already be
weighing on consumer spending.
Some 248,000 new passenger cars were registered in July, down 16.2%
from June and almost 5% lower than one year ago.
Between January and July, 1.88 million cars were registered,
broadly unchanged from the same period in 2011. This contrasts with the
declining trend in other Eurozone markets.
VDIK head Volker Lange warned that the ongoing debt crisis could
hinder further growth in the car market.
“The passenger car market in the fall can only be livelier and more
stable if the financial crisis in Europe is closer to a solution and the
confidence of citizens in politics and the economy is strengthened,”
Lange said.
Rising employment continued to support consumer spending propensity
last month, offsetting a decline in income expectations, a GfK poll
noted.
“The current financial crisis is also impacting willingness to
buy,” GfK said. “The lack of trust in financial markets and historically
low interest rates mean that saving money does not appeal. Consequently,
consumers are more likely to make high-value purchases.”
Mirroring GfK’s findings, a European Commission survey showed
consumers’ propensity to make major purchases at present rebounded in
July to a four-month high.
However, with inflation and jobless fears rising, households said
they were somewhat less likely to make big buys over the next year than
in June, the survey showed. Intentions to buy a car in the coming year
have been recovering from very low levels, but at a slow, uneven pace.
— Frankfurt bureau: +49 69 720 142; email: frankfurt@marketnews.com —
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