In Europe, Auto Sales Are Still Low, But They Are Rising

European auto sales figures for March, reported today, show that slightly more new cars were sold in the euro zone during the most recent 12 months than had been sold a year earlier. The increase was a tiny one, just 0.4 percent.

Source: European Automobile Manufacturers Association

Monthly figures have been rising for some time, but this was the first year-over-year rise since early 2010, and another sign that economic growth is returning to Europe.

Some of the largest gains were in countries that have experienced severe recessions. Sales in Greece, Portugal, Spain and Ireland were all at least 10 percent higher than they had been during the previous 12 months.

Source: European Automobile Manufacturers Association

To some extent, however, that merely reflects how low sales had fallen. Even with the the gain, sales in Portugal during the 12 months through March were 43 percent lower than in the full year 2007, and sales in Greece, Spain and Ireland were down by more than half. For the euro area as a whole, the decline was 26 percent.

By contrast, United States auto sales over the past 12 months were up 6 percent from a year earlier, and were only 3 percent below the 2007 level. In Britain, sales were up 12 percent on a year-over-year basis, and 2 percent below the 2007 level.

Source: European Automobile Manufacturers Association