(RTTNews) - Australia’s new vehicle sales rose for the first time in 16 months in October, as there were signs of a broadening economic recovery, the Federal Chamber of Automotive Industries said Thursday.

The chamber said vehicles sales, which includes passenger cars, SUVs and commercial vehicles, increased 2.2% in October from a year earlier.

“This was a good solid monthly result with the welcome return of private, business and rental buyers in larger numbers,” FCAI Chief Executive Andrew McKellar said. “This is the first month since June 2008 that sales have increased when compared to the year before,” he said.

McKeller said the industry was looking forward to round off the year on a positive note and expects a further rise in sales as businesses take advantage of the tax breaks before the end of the year.

Commenting on the latest interest rate hike by the central bank, McKeller said, “While the latest figures are encouraging we would urge the Reserve Bank to proceed with caution in contemplating further interest rate rises until the foundations of a full recovery are clearly established.”

In October, sales of SUVs rose 9.5%, followed by a 3.4% increase in light commercial vehicle sales and a 1.3% rise in that of passenger cars. However, sales of heavy commercial vehicles dropped 24.9%. Toyota remained the most popular brand, followed by Holden and Ford.

In the ten months of the year, total vehicle sales were down 11.7% from the corresponding period last year.

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Posted in Categories: Australia, Economy, Releases.

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