The auto industry of US has seen a sharp drop in sales in July as the retail sales dropped in US because of the uncertainty of the state of economy of the country.

After seeing the drop in sales in July the auto industry was expecting for a rise in the month of August but according to the latest IPO of General Motors there is no sign of any rise in the August also.

The auto sales rose from a serious depth in last year during the peak of the economic downturn but it was not clear that how long the sales would grow.

As per the experts, the sales are totally dependent up on the economic condition of the country. The auto industry needs a strong economy which would raise business confidence and employment for the rise in its sales.

But the US economy seems to be failed in both the ways in the current situation. The US economy is slowing down gradually despite of rising in an effective pace and creating fears of double dip recession in the country.