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Auto sales slow

DETROIT (AP) — Most automakers saw their US sales drop from May to June, a sign that this year's slow recovery in the industry may be stalling.

Americans are delaying big-ticket purchases because they're worried about their jobs in a period of high unemployment. Nervous consumers could mean a tough summer for automakers, who hope to improve sales after a dismal 2009.

"Consumers are clearly hunkering down in light of the current environment, waiting for signs of a renewed recovery," said Jeff Schuster, executive director of global forecasting at JD Power and Associates.

Unemployment fears flared again yesterday when the Labor Department reported that new claims for jobless benefits jumped last week. Claims have been stuck above 450,000 since the beginning of the year, raising concerns that jobs remain scarce as the economy recovers from the worst recession since the 1930s.

The auto industry's struggles could be good news for some consumers. Analysts say if the month-to-month declines continue, automakers will be tempted to expand sales promotions such as low-cost leases, zero-percent financing and cash rebates. But for now, buyers will have to wait for sweeter deals. Automakers averaged $2,661 in deals per vehicle last month, down $36 from May, according to the Edmunds.com automotive website.

Sales of new cars and trucks for General Motors Co., Ford Motor Co., Toyota and Chrysler Group LLC fell between 12 and 14 percent from May to June. Nissan, Subaru and Honda were also down, but Hyundai bucked the trend with a slight gain.