British new car registrations rose modestly in May while private and business demand fell, possibly reflecting uncertainty over Britain’s EU referendum, the Society of Motor Manufacturers and Traders said yesterday.

Registrations overall rose 2.5 per cent in May to 203,585 units, SMMT said in a monthly update.

“The new car market in May remained high... but the low growth is further evidence of the market cooling in the face of concerns around economic and political stability,” SMMT chief executive Mike Hawes said.

Fleet buyers drove growth, with demand up 8.8 per cent, while registrations by private customers were down three per cent and the business segment fell by just over 20 per cent.

“Whether this is the result of some buyers holding off until the current uncertainty is resolved or a sign of a more stable market for new cars remains to be seen,” Hawes said in a statement.

In April, new car registrations rose by two per cent.

Britain’s economy has slowed ahead of the June 23 referendum on the country’s EU membership. Earlier yesterday, a group representing British manufacturers said they expected a slight recovery for the sector later this year but that slow improvement could be knocked off-course if the country votes to leave the EU.