09 Jul 2007
Business boom pushes up commercial vehicle sales
Continuing business confidence helped push commercial vehicle sales up in June, but a further interest rate rise could curb spending and stall the truck sales boom.
34,657 commercial vehicles were sold during June, 6 per cent up on 2006.*
Within the total, truck sales shot up 53.2 per cent reaching 4,220. Van sales increased by 1.6 per cent, and reached 30,437. *
Sue Robinson, director of National Franchised Dealers Association (NFDA), a part of the Retail Motor Industry Federation (RMIF) commented: 'Consumer spending has continued at a high level despite repeated interest rate increases, and one result of the boom is the continuing need by businesses for commercial vehicles.'
The Bank of England announced today (5 July 2007) that interest rates are to increase by 0.25 per cent to 5.75 per cent.
Robinson believes that business confidence could take a knock due to the rate increase: 'The inexorable upward curve of interest rates may give consumers pause, and that could have a negative impact on businesses, and hit commercial vehicle sales.'
She adds: 'The chancellor would be helping businesses, CV dealers, and the overall economy if he held the rate for the rest of the year.'