New data has further confirmed the downward trend in new vehicle sales in the state with the Australian Bureau of Statistics showing sales slumped nearly 10 per cent in the year to September.
New data has further confirmed the downward trend in new vehicle sales in the state with the Australian Bureau of Statistics showing sales slumped nearly 10 per cent in the year to September.
The ABS said today that overall 8,444 vehicles were retailed during September, an increase from a seasonally adjusted 8,050 from the previous month.
However the figure was a 9.7 per cent fall from September 2008.
The sale of passenger vehicles rose slightly during the year to September from 4,932 units to 4,298, while sports utility vehicles dipped slightly from 1,954 to 1,911.
Earlier this month the Federal Chamber of Automotive Industries recorded a similar drop, 11 per cent, in WA vehicle sales from September to October, and a 17.3 per cent slump in vehicle sales in the year to October.
Nationally, new motor vehicle sales rose by 3.7 per cent, seasonally adjusted, to 81,122 units in October, from 78,243 units in September, the ABS said.
The October figure was 15 per cent above the series' six year low of 70,518 units in March.
CommSec economist Savanth Sebastian said the data could be the first in a series of positive indicators the RBA will use to make its December interest rate decision.
"The RBA, for December, have highlighted the decision will be data dependent," he said, referring to the minutes of the RBA's November board meeting in which the bank said the pace of future interest rate rises remained "an open question."
"They've never raised rates three months in a row before and if there's a month when its likely to happen December would be it.
"I think they'd be well aware the car industry has turned the corner - car sales are improving, confidence is improving - it just gives them confidence the economy is on the mend."
In October, the RBA lifted the cash interest rate from a 49-year-low of three per cent to 3.25 per cent.
It then raised the rate by a further 25 basis points in November to 3.5 per cent.
If it lifts rate again after the RBA's December 1 board meeting, it will be the first time it has hiked rates three months in a row since it began announcing rate decisions in January 1990.
Mr Sebastian said the motor vehicle series showed a strong improvement across the board.
Sales of passenger vehicles were at a seasonally adjusted 46,892 in October, its highest since September 2008 when 47,031 were sold.
The other vehicles category - which records vehicles commonly used by businesses - hit 18,199 in the month, its highest since June this year when 20, 146 units were sold.
National Australia Bank economist David de Garis said the data showed businesses had stepped up to capitalise on the Federal Government's investment allowance which runs out at the end of December.
The scheme allows small businesses to claim a 50 per cent tax deduction on "depreciating assets" like trucks and vans before December 31 this year.
"These data point to businesses on another buying spree into the end of the calendar year when the 50 per cent investment allowance runs out," Mr de Garis said in a research note.
"Sales in the September quarter have not been a drag on growth but been flat overall and will make some contribution to business investment and consumption in quarter four."
Other key economic data due to be released ahead of the RBA's December board meeting include ABS September quarter construction work done on November 25, ABS September quarter private new capital expenditure on November 26 and the TD Securities-Melbourne Institute monthly inflation gauge and ABS September quarter business indicators on November 30.
