IT was perhaps not the greatest surprise to hear Lookers cite the uncertainty caused by Brexit on the car market.

The Society of Motor Manufacturers and Traders (SMMT), for many the voice of the UK motor industry, highlighted flagging consumer and business confidence this month as the new car market plunged by 9.3 per cent in July. It was the fourth month in a row the market had contracted, with the SMMT calling on the UK Government to “provide concrete plans regarding Brexit”.

While Lookers said yesterday that it expects the new car market to “reduce slightly”, it emphasised that the sector is forecast to remain at a “historically high level”.

However it rightly views the economic uncertainty caused by Brexit, including the dramatic effect the vote to leave the European Union has had on sterling, as a major worry. And it is no big surprise.

With average real earnings continuing to fall, and inflation riding high at 2.6 per cent, household budgets in the UK remain under significant pressure – conditions unlikely to encourage people to splash out on big ticket items such as new cars.

Lookers said its profit expectations for the year remains unchanged, but there is no doubt that the business – and the car sector across the board – will have to navigate uncertain territory for some time to come.