Financial Times FT.com

Warning over US cash-for-clunkers scheme

By Simone Baribeau in New York and Bernard Simon in Toronto

Published: August 13 2009 18:51 | Last updated: August 13 2009 18:51

The popular US cash-for-clunkers programme may be drawing money from other consumer purchases and could also undermine future car sales, US economists have warned.

Motor vehicle and parts sales, down 8 per cent on the year, jumped 2.4 per cent from June, according to data from the US commerce department on Thursday, but other retail sales fell 0.6 per cent in July.

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