1. ITV Report

Increase in sale of cars good sign for Midlands economy

Increase in car sales in the Midlands have risen by 28% compared to May 2011 Photo: ITV Central

There's been a big increase in sales of new cars this month across the Midlands, official figures revealed today.

The Society of Motor Manufacturers and Traders says it shows there's been a rise in confidence among buyers.

The society says the Midlands as a whole has fared better than the rest of the country.

This is thought to be linked to improving results in the region's industries.

The Society of Motor Manufacturers and Traders (SMMT) Chief Executive Paul Everitt says the increase in sales is a positive sign for both the motor industry and the UK economy.

"There is no doubt that vehicle manufacturers and their dealer networks are working hard to deliver value for money to motorists, and the consistent climb in new car registrations during the first five months of the year suggests that confidence is returning, despite financial uncertainty in the eurozone."

– SMMT Chief Executive Paul Everitt

Figures by the SMMT reveal that car sales in the West Midlands increased by almost 22% last month compared with May 2011. Overall car sales have increased by 20% so far this year compared with 2011.

However East Midlands are not faring quite so well, although car sales are up by 28% compared to May 2011,figures show that sales are actually down for the year so far compared with 2011.

Lee Joel a Sales Manager for Vauxhall thinks an increase in confidence is the reason for the increase in sales.

"We have seen an increase in the foot-fall of people coming here to buy new cars.

An increase in confidence, people not wanting to 'make do', and having a warranty with a new vehicle is the reason car sales have increased"

– Lee Joel - General Sales Manager for Vauxhall dealer