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EuropeanConsumer confidence bounces back after post-EU referendum slump

A YouGov/CEBR Consumer Confidence Index has rebounded strongly in August by showing its largest monthly increase since February 2013. The latest poll shows consumer confidence has improved to 109.8 in August, up by 3.2 points from 106.6 in July. This is the highest monthly bounce seen since February 2013 when it rose by 3.5 points after the UK economy performed more strongly than expected. August’s rise in consumer confidence follows a sharp fall in July in the month following the EU vote.

CAPHPICap HPI expects double-pronged pressure after ‘stable’ August

Cap HPI has warned that a “stable” used car market could suffer under the double-pronged pressure points of increasing volumes and an more nearly-new vehicles in the market.

Strong retail demand has supported used values in August with a reduction of 0.7% at the three-years and 60,000 miles, according to cap hpi.

The automotive data experts say the stable market is due to consistent performances across sales channels, and is steadier than the 1.6% reduction experienced during July – mirroring September 2015’s decline of 0.6%.

But James Dower, senior editor of Cap HPI’s Black Book, said: “There are likely to be two pressure points moving forwards, the nearly new market and also potentially higher volumes of stock entering the used car arena.

“The majority of manufacturers still have significant volume aspirations for the remainder of the year and the new car retail performance in September will dictate just how far reaching the effect of pre-registration activity will be over the used car market in the final months of the year.

“With ongoing reports of dealer stock at such high levels, another wave of pre-registered cars could continue to put pressure on cash flow and stocking plans leading to increased stress on margins and profitability.

salesNew car registrations in Europe end 34-month bull run

New car registrations in Europe went into reverse in July, ending of 34 consecutive months of growth.

Registrations in the 29 markets analysed by JATO Dynamics declined by 2.3% to 1.16 million compared to July last year.

Jato said the two fewer working days in July may have been a contributing factor to the decline along with significant contraction in two of the largest European car groups, PSA and VW, who recorded a 13.2% and 8.8% fall in registrations respectively.

The UK posted a slight increase of 0.1% which is an improvement on June’s figures. Of the large markets, France and Germany recorded significant drops of 9.6% and 3.9% respectively, whilst the others recorded modest increases, with Italy posting a 2.6% rise and Spain a 4.4% increase.

Volkswagen was the best-selling brand, with 136,393 units registered, accounting for 11.8% of the total market.

But in comparison, in July 2015 its volume of 152,863 accounted for 12.9% of the total market. But it recorded the highest drop of any brand in the top ten, falling by 10.8% compared to the same period last year, closely followed by Skoda and Peugeot who both recorded a 10.5% drop.

Jato said Volkswagen’s decline could be attributed to the emissions issue and anticipation ahead of the launch of the updated version of the Volkswagen Golf at the Paris Motor Show in October.

Source: Motor Trader

Posted by Sue Robinson on 02/09/2016