With suggestions that the US car market may be picking up beginning to emerge, analysts have been further cheered by the news that American new vehicle sales are expected to have hit their strongest level this year in August.

Despite high petrol prices and the infamous blackout that stuck North America a number of industry heavyweights are anticipating more encouraging results in August.

Steve Lyons, Ford division president, told Reuters that US new-car and light-truck sales could hit a seasonally adjusted annual rate of 18.2 million to 18.7 million in August, well above July's strong rate of 17.2 million.

'Certainly the deals are good, and customers are responding,' Mr Lyons told reporters, citing the strengthening American economy and high incentives for the rise in sales.

Lyons' forecast was above those taken from Wall Street, which ranged from 17.5 million to a high of 18.7 million, although most settled for around 18.2 million. Automakers are scheduled to report August sales on Wednesday (September 3rd).

However, despite sales looking surprisingly strong this month, they are unlikely to surpass last August's exceptionally strong 18.6 million, which was the most productive month of 2002.