Car Sales Continue to Climb in U.K.

New-car deliveries in the U.K. grew nearly 8% to 194,000 vehicles in May, the Society of Motor Manufacturers and Traders reports.

Last month's increase was the 27th consecutive month of expansion, breaking a record-long run set in the late 1980s. Sales through the first five months of 2014 climbed nearly 12% to 1.06 million units.

Analysts attribute the boom to heavy discounting, easy credit, a strong British economy and rising consumer confidence. SMMT notes that buyers are demanding more style, comfort and features. The installation rate for air conditioning, for example, jumped from 75% in 2004 to 95% last year.

But SMMT predicts full-year volume will rise about 6% to 2.4 million, indicating slower growth ahead as the demand approaches equilibrium.