The market is not in the doldrums, as the RMI pointed out sales are still reasonably strong, but it is suffering a hangover having gone into a steady decline since March 2004 when a record 470,000 new cars were sold. Dealers can pay a heavy price for falling new car registrations, particularly in the private sector, with their margins coming under increasing pressure as manufacturers fight to preserve market share by enticing customers into showrooms with discount deals. According to the CBI monthly Industrial Trends Survey, published last week, manufacturing order books fell to their weakest level for almost two years in August. With oil prices 50 per cent higher than a year ago at $62(£34) a barrel and metal prices also up, the CBI said the pressure on profit margins was intense as businesses were unable to pass on cost increases to customers already reluctant to spend. The move by the Bank of England this month to reverse the trend of rising interest rates with a 0.25 per cent cut to 4.5 per cent received only a cautious welcome from the motor trade. Only a prolonged series of reductions would be likely to boost consumer confidence and inject new life into the retail sector.