Automobile sales in the EU decline due to economic concerns

The sales of light vehicles in the United States would remain stable in August, but they showed the first signs of deceleration on Monday, according to S&P Global Mobility, in the midst of contract negotiations with the workforce and an increase in interest rate rates.

According to the report centered on the industry, sales of light vehicle new sales are projected to reach 1.34 million units in August, an increase of 18% over the previous year.

«Rising interest rates, tightening credit and slowly slowing new vehicle prices continue to be pressure points for consumers,» said Chris Hopson, senior analyst at S&P Global Mobility.

The automotive analyst firm also lowered its annual forecast to 15.2 million units of new light vehicles estimated to be sold in the U.S. from July’s expected sales of 15.7 million units.

Vehicle supply could be disrupted in North America as negotiations with unions have been complicated of late, the report said.

The UAW union reported Friday that its members voted overwhelmingly in favor of authorizing a strike at the three Detroit automakers if a deal is not reached before the current four-year contract expires Sept. 14.