If is to take after the number of vehicles purchased in Britain, there’s no crisis, as new car sales rose 11 percent last month compared to May 2012 and just 3 percent below the 2007 level.
Last month British consumers bought 180,111 vehicles – up 11 percent from 162,888 in May 2012. Private demand climbed 20.9%, outperforming pre-recession volumes recorded in 2007.
The new car market has risen 9.3 percent for the year-to-date to 948,666 units.
Ford remains the best sold vehicle in UK as Fiesta sold 9,316 units and Focus 7,522 units. Vauxhall comes in third place selling 6,634 Corsa models, while the Germans from VW sold 5,247 Golf units.
“The performance of new car registrations in May marks a significant milestone for UK automotive, with cars registered by private buyers rising more than 20%, bettering pre-recession volumes posted in 2007,” said SMMT Interim Chief Executive, Mike Baunton.
The numbers are coming just after the Bank of England said the U.K.’s services sector grew at the fastest pace in more than a year in May. Also Britain’s construction sector returned to growth and retail sales rebounded in May.
However the unemployment in the UK is still at the 7.7% level where youth unemployment is 20.2%.