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By Lee Wild

Date: Monday 06 Oct 2008

LONDON (ShareCast) - Consumers are more worried about their jobs than splashing out on a new car, evidenced by a 21.2% annual plunge in new car registrations last month.

Registrations tumbled to 330,295 units in September following an 18.6% slump the month before, according to the Society of Motor Manufacturers (SMMT).

“Sharply deteriorating car sales is a further clear sign that consumers are increasingly cutting back on their spending,” said Howard Archer, chief UK economist at Global Insight.

“The September performance is particularly worrying and disappointing given that it is a key month for the car industry due to the number plate change that occurs.”

Rising unemployment, higher utility bills and food prices, tight credit conditions and falling house prices are convincing people to slash spending on big ticket items.

SMMT chief executive Paul Everitt told the BBC the figures represent “the worst decline in new car and commercial vehicle registrations since 1991."

Today’s data also revealed registrations are down 7.5% in the year so far.

Private car sales fell by 23.3% year-on-year in September to 149,510, but business registrations plunged by 37%. New fleet registrations sank by 16%.

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