The world's largest carmakers have predicted an improvement in the automotive market amid indications that the sector's recent decline could be coming to an end.

General Motors chief executive Rick Wagoner said he expected performance to increase steadily throughout the remainder of the year:

'The prospects for the second half of the year are clearly better and the fourth quarter should be strong again.'

A Ford spokesman concurred, saying the firm was 'more optimistic than we were two months ago', referring to improved orders and sales figures for June and July. 'We think there is a trend.'

One newspaper has already rumoured that Ford, which constantly revises its production schedule to react to demand, will lift its fourth-quarter output by 40,000 units.

An anonymous German fund manager quoted by Auto News sounded a note of caution, however:

'A few slightly upbeat comments are trickling through for the rest of the year, which is reassuring but remember, in the US, carmakers are fighting to make money and things are still very fragile in Europe.'