The rise followed other signs of a gradual recovery in Britain’s economy after its historic 25% contraction in March and April. House prices and manufacturing have risen although jobs cuts are mounting in the retail sector.
Dealerships reopened their doors to customers on June 1 in England, June 8 in Northern Ireland, June 22 in Wales and June 29 in Scotland after being closed since mid-March.
The Society of Motor Manufacturers and Traders, an industry body, cautioned that pent-up demand had boosted the 174,887 sales recorded in July.
“By the end of September we should have a clearer picture of whether or not this is a long-term trend,” SMMT Chief Executive Mike Hawes said.
The group has been lobbying for additional support for the sector, including a possible scrappage scheme.
July’s increase in sales was the first since December but year-to-date demand is down just over 40% and the latest forecast by SMMT predicts a full-year drop of around 30% in 2020.
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