New car sales - a key indicator of consumer confidence - slumped again last month.

The number of new UK registrations in October 2008 totalled 128,352 - a 23.05 per cent drop on the October 2007 figure, the Society of Motor Manufacturers and Traders (SMMT) said.

The October decline was the worst year-on-year monthly drop since June 1991 and followed hefty falls in purchases in August and September this year.

The year-to-date sales for 2008 now total 1.92 million - an 8.7 per cent drop on the January-October 2007 figure.

The SMMT has now revised its whole-year sales forecast for 2008 down to 2.15 million vehicles.

SMMT chief executive Paul Everitt said: "October has proved another difficult month for the UK motor industry and action is needed to help restore consumer confidence and encourage buyers back to the showrooms."

He added: "Cuts in interest rates that are swiftly passed on to consumers, scrapping planned increases in vehicle excise duty (car tax) and maintaining public expenditure on new vehicles are essential parts of the package required by industry."

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