The US automotive industry enjoyed a bumper festive period as retail sales in the sector rose during December.

According to the US Commerce Department vehicle sales rose by 4.3 per cent for the month adding momentum to the industry as it enters 2005.

The hike in sales helped push up the overall retail performance in the country, providing an end-of-year boost to the automotive sector after a patchy November in which sales fell one per cent.

The monthly figures are likely to provide some comfort for manufacturers after a year in which sales stabilised around the 17 million annual mark.

Leading industry figures said earlier this month that they expected 2005 to prove a mixed year in the US.

George Pipas, Ford's US sales analysis manager, told the Detroit News that his firm anticipated next year following a similar pattern of limited growth to 2004, predicting sales in the range of 17 million units for 2005.