Spain: New car sales down 8.2pct in May image

New car sales in Spain fell again in May according to the ANFAC – Asociacion Española de Fabricantes de Automoviles y Camiones.

In May there were 72, 442 new vehicles sold in Spain, 8.2 percent fewer than a year earlier in nominal terms. For the first five months of the year, registrations were down 7.3 percent on the year to 332,811 units.

Car sales have now fallen for the past 23 months. The economic director of Anfac, Aranzazu Mur, forecasts the industry will struggle to sell 750,000 cars this year. He called on the Spanish government to consider implementing a plan to help stimulate car sales.

In recession-hit Spain, unemployment spiked to 24.3 percent, the worst rate in the EU. It was up 0.2 points since March, and 3.6 percentage points compared to last year. Youth unemployment ballooned to a 51.5 percent, up from 45 percent last year.

The economy is mired in its second recession in three years and forecast to shrink 1.7 per cent for the year.

Amid all this, the Government is trying to bring down its debt as a proportion of its economy to strict European standards.