Merchants are hoping for a Valentine’s Day validation.Retailers and others are looking for any signs that an economic comeback is truly mounting.
DETROIT – General Motors says its August sales dropped 7 percent compared with July, as the shaky economy discouraged customers from buying new cars and trucks.
U.S. auto sales in July were a strong point for the economy, helping to boost consumer spending. But high unemployment and a declining stock market have made people afraid to spend money on big-ticket items, industry analysts say.
Sales last month also fell 25 percent from August of 2009. But last year’s sales were boosted by the government’s Cash for Clunkers rebates.
GM says sales from its four remaining brands – Chevrolet, Buick, GMC and Cadillac – fell 11 percent compared with August of last year. Buick, GMC and Cadillac reported increases. But Chevrolet sales slipped because last year’s clunkers program gave a boost to its lineup of smaller cars.
