Car sales in the UK are predicted to slide this year, adding to worries over a slowdown in consumer spending.
New car registrations may fall by up to 5.5 percent during the course of 2018, according to ratings agency Moody’s. The falling value of the pound since the EU referendum has had a negative effect on the market, making imported cars more expensive for UK consumers. It also said Brexit-related uncertainty was “weighing on consumer spending decisions”.
The figures are in stark contrast to those of Germany, Spain, France and Italy, which are all expected to see gains. According to Moody’s, the UK market is likely to be the “worst performing” market of any big European economy.
The industry has seen impressive growth of late, with a record 2.7 million new car registrations in the UK in 2016 according to SMMT figures. However the figures took a plunge last year, falling 5.7 percent as consumers began to spend less and avoid big diesel vehicles.
