RTTNews - Car production in the U.K. fell for the eighth straight month in May, though the decline was the smallest of the year, the Society of Motor Manufacturers And Traders Limited or SMMT said Friday.
Production of cars dropped 43% year-on-year to 67,754 in May after falling 55.3% in April. Production of commercial vehicles slumped 73.5% to 4,692 following 65.2% contraction in the previous month. Hence there was a fall of 47% in total vehicle production in May.
The scrappage schemes in place across Europe are now beginning to have a positive impact, although the full benefits will take a little longer to flow down to companies at all levels in the supply chain, SMMT Chief Executive Paul Everitt said.
Commercial vehicle production was severely affected by weak business confidence and economic uncertainty. Everitt said, Businesses across the economy are still holding back on new expenditure and will need to see better access to finance and stronger domestic demand.
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