The Society of Motor Manufacturers and Traders (SMMT) has reported that new car registrations fell 5.9 per cent in October on a like-for-like basis.

However, the society says that the figures were distorted by fewer reporting days and should recover in November.

The SMMT said yesterday that there were 170,866 new car registrations, but two less reporting days this October compared with last year.

Christopher Macgowan, SMMT chief executive, explained: "Despite a dip in October, the new car market is still running parallel with last year's record total."

"We expect a slight upturn in November figures which will leave the increasingly strong December market as the decider," he told Reuters.

The decline has been attributed to low demand from the private sector, with consumer confidence already low after five consecutive interest rate rises.

The organisation was upbeat that this year new car sales will be comparable with last year's record total due to a strong start to the year.