New car sales in the UK increased by 6% in August compared to the same month a year ago, the second consecutive month of growth, according to figures released by the Society of Motor Manufacturers and Traders (SMMT).

The growth has been attributed to the affects of the government's car scrappage scheme, which provides a £2,000 discount when a new car is bought and a car over ten years old is exchanged. The money is provided equally by the government and the car industry.

"The scrappage incentive scheme is having a positive impact but with consumer and business confidence still fragile, there remain significant risks ahead," said Paul Everitt, SMMT chief executive.

However, despite the second successive rise in new cars sales total sales since the start of 2009 are still 21.5% lower than the same period last year.