A dip in US consumer spending on cars last month held back retail sales in the country, according to new statistics.

Retail data from the US Commerce Department showed that sales were up by 0.2 per cent overall, with the automotive market underperforming.

A 2.2 per cent decline in automotive sales undercut wider gains, with some analysts pinpointing rising petrol prices as responsible for the downturn.

However, there was some general encouragement for the market with signs that consumer confidence is on the rise.

Preliminary figures show the index rose to 95.5 at the start of this month, a significant fillip from the 91.7 average in October.

Nevertheless, the latest automotive statistics echo sentiments emerging from Detroit manufacturers regarding last month's sales figures, with analysts identifying an industry slowdown.

This was partly due to a drop off in purchasing incentives, but was exacerbated by rising energy prices.