Europe posts 8.1 per cent drop in June car sales

Europe posted its biggest slump in new car sales in eight months in June, adding to signs that the region's economy has lost momentum in recent months, industry sales figures released Friday showed, according to dpa. The Brussels-based car industry association (ACEA) said sales across the 27-European Union dropped by 8.1 per cent in June compared with the same month a year. Last month's fall followed a 7.1 per cent rise in May. But since then concerns have grown about the economic outlook following a pickup in inflationary pressures and the debt crisis gripping parts of the 17-member eurozone. The ACEA figures showed a fall in each of the Europe's major car markets, with sales contracting by 0.3 per cent in Germany and by 1.7 per cent in Italy. However the biggest slump was in Spain were sales tumbled by 31.4 per cent. Sales were down 6.2% in Britain and 12.6 per cent in France.