The number of new cars sold in Northern Ireland jumped by a colossal 13,000% last month, compared to the same time last year, according to the Society of Motor Manufacturers and Traders (SMMT).
But while the 3,295 new registrations in April were a substantial improvement on the 24 sold in April 2020 at the start of the first lockdown, the result was still disappointing.
In fact, last month’s sales ranked as the second worst April on record, a sign that consumer confidence remains fragile in the wake of the pandemic.
Richard Ramsey, Chief Economist for Northern Ireland at Ulster Bank, said there is still a reticence to invest in high value goods but as lockdown eases the mood is likely to lighten.
“After buying a house, a new car is the biggest purchase consumers will make,” he said. “While lockdowns have led to an estimated £3.7 billion of additional or forced savings amongst Northern Ireland’s consumers, there is no sign yet that consumers are rushing in sufficient numbers to splash their surplus cash on a new set of wheels.”
“Now that lockdown restrictions have been lifted for car showrooms May might see a more encouraging set of sales figures.”
He said the new car registration figures are the first in a raft of data which will show significant growth rates.
The housing market - which, like car showrooms was closed as a result of lockdown last year - is also expected to show a large jump.
Mr Ramsey said HMRC’s residential property transactions for April 2021 due on 21st May should see year-on-year growth rates of between 500-750%, again a result of April 2020’s 80% year-on-year slump to just 410 residential sales.
“So, hearing growth rates in the several hundreds and thousands in the coming weeks should be treated with caution,” he said. “The huge increases are primarily a reflection of how bad the corresponding month/quarter was last year rather than how strong activity is this year.”
