The world's largest automotive market is set for a slowdown in August according to new industry analysis.

Reports on AP reveal that experts are predicting sales in the US will fall to 16.9 million, a marked dip from record sales in July of 20.8 million.

This was largely attributed to the end of incentives at showrooms across the country, with July's bumper sales saturating the market to an extent.

With petrol prices continuing to rise – a trend set to be exacerbated by the effects of Hurricane Katrina – an additional squeeze may materialise.

Firms such as the world number one General Motors are expected to see a good run over the last two months come to an end.

Sale increases of 41 per cent in June and 19 per cent in July for the firm are not expected to be repeated for August.

However, there was some encouragement from Ford, which has reported a sales increase of three per cent in August, and also at DaimlerChrysler, where sales increased by one per cent.


Ÿ Adfero Ltd