New vehicle retail sales in the US in October are expected to post a double-digit increase over the same period a year ago, and remain significantly stronger than the summer selling rate for the second month in a row, according to JD Power.

The US market is continuing to see an uplift due to an improved inventory position after supply-chain disruption hit vehicle production for several manufacturers earlier in the year.

The actual market results for the month will be released by manufacturers later today and fully consolidated by tomorrow (November 2).

JD Power said that the October retail seasonally adjusted annualised rate (SAAR) is expected to come in at 10.5m units, which is at the same level as September. The total light vehicle selling rate is forecasted to be at 13.1m units for the month.

“The relatively strong selling rate seen again in October suggests that the fourth quarter may close stronger than previously expected,” said Jeff Schuster, executive director of global forecasting at JD Power.

“Recent bright spots in the economy may also help calm nerves and support stable vehicle sales, but risks remain and consumer confidence is still low, tempering the outlook for 2012,” he added.

See also: October 2011 management briefing: world vehicle markets in focus