'May's car sales drop amply demonstrates the negative impact of the recent interest rate rises on consumer spending,' said Sue Robinson, Director of the RMI National Franchised Dealers Association (NFDA), part of the Retail Motor Industry Federation (RMIF), commenting on car sales figures for May 2007. 185,797 new cars were sold during May, 2.2 per cent down on 2006.* Robinson continues: 'The upward curve of interest rates, combined with expectation of an imminent property market slowdown has reduced consumer confidence, and this is impacting on the market.'Interest rates last went up in April by 0.25 per cent, shortly before that month's car sales figures were released.

'May's sales result is not unexpected. March and April's figures were boosted by the launch of the new 07 plate, so what we are seeing is really a return to the anticipated sales levels for the year.