The company commented that we have seen a similar outcome in June to that of May: year‐on‐year results generally remain negative while the Seasonally Adjusted Annualised Rate of Sales appears to be more solid.

LMC added that part of the year‐on‐year fall can be attributed to one fewer selling day, but even accounting for this, the market is still down. Four of the five major markets were lower, the exception once again being the UK. In contrast, the West European selling rates have been, if anything, improving in recent months, with a year‐to‐date high in June of 11.7 million units/year. The first half of the year has seen the West European market fall by nearly 7% but the improving selling rates indicate the full year market will be down closer to 3‐4%.

The UK has continued to progress while those around it struggle. Low interest rates, strong incentives and windfalls from PPI claims have helped fuel the private side of the market. In contrast, the German market has disappointed in recent months, with one factor being that potential buyers are holding off until after the September elections.

France has seen its market rates fall markedly from a year ago, and while the latest result is a little better, a significant contraction in registrations this year is guaranteed. Italian sales also continue to fall.

The Spanish market saw flat sales on June 2012, with a better result implied when the one less selling day is accounted for. However, the PIVE incentive remains a key reason for this and the implication is that underlying demand is desperately low.

Of the smaller West Europe counties, the Netherlands looks set for a major fall this year, down 36% for the first six months of the year in the face of a significant economic headwind