NEW YORK, Aug 23 (AFP) - New vehicle sales for the month of August will likely come in lower than last year`s level when they are published next week, industry analysts said Monday, citing Hurricane Charley among other factors.
Merrill Lynch analyst John Casesa predicted industry sales would ease two percent from last year because of sales lost to Charley, the dampening effect of rising oil prices and interest rates, and due to uncertainty over the economy and the presidential election.
The industry notched up sales of 1.63 million units in August of last year, according to Autodata Corp. of New Jersey.
"August`s sales are disappointing considering the high level of incentives, and more importantly, because of the need to clear out excess inventories," he wrote in a research note issued Monday.
"We continue to believe that OEMs (manufacturers) will go heavy on incentives and light on production cuts to balance supply and demand."
Separately, Ford Motor Company sales analyst George Pipas also cautioned that Charley "could weaken the August sales report," Automotive News reported Monday.
The category four hurricane that flayed Florida earlier this month damaged or destroyed at least 6,700 new vehicles in the Sunshine state -- an important state for sales -- according to Automotive News.
Automakers will release their August sales data September 1.