Australian new car sales fell a seasonally adjusted 3.5% in July after jumping by about the same amount at the end of the last financial year.
The ABS today reported that 93,797 vehicles were sold in Australia last month, with sales falling across all categories (passenger, SUVs and other vehicles).
Car sales fell in all states and territories except the Northern Territory (up 8.6%). The largest fall was recorded in the Australian Capital Territory (6.7%).
The month-on-month fall of 3.5% was just shy of Westpac’s 4.0% forecast. New car sales are still up 3.0% year-on-year.
Westpac economists warned last week that “[fringe benefit] tax changes may have a bigger impact in coming months”.
The changes were introduced in mid-July; the Federal Chamber of Automotive Industries warned that new car sales would fall by 10% annually in response.
There’s more on the ABS.