US auto sales post weakest Aug. since 1983

Automakers posted their weakest U.S. August sales in 27 years, underscoring uncertainty about the strength of the recovery in the world's largest economy.

Sales dropped 21 percent from the government incentive-fueled boom a year ago. Monthly auto sales data represents one of the first and broadest-based snapshots of consumer demand.

"The hesitation by the consumers to spend their hard-earned money continues," said TrueCar.com analyst Jesse Toprak.

On an annualized basis, the sales rate fell slightly from July and was well below what most analysts had expected by now, 18 months after sales hit bottom.

The U.S. sales figures were broadly in line with the cautious expectations of analysts and came as vehicle sales declined in Western Europe as government incentives ended in some countries. (For a graphic on August car sales in China, Japan, France and Spain, see: r.reuters.com/kaw68n )

Taken together, the results contributed to concerns that private consumption was faltering or stalled in the mature markets major automakers and established parts suppliers rely on for the largest share of their sales.

Major automakers posted double-digit sales declines in the U.S. market, led by Toyota Motor Corp (7203.T) and Honda Motor Co (7267.T), which saw results plunge by a third from the subsidy-fueled gains of August 2009.

The U.S. auto sales rate of 11.47 million vehicles was down sharply from the 14 million-plus rate in August 2009 when the U.S. government's "cash for clunkers" sales incentives touched off a short-lived boom.

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