UK car registrations rose by 12.7 percent to more than 162,000 in July, prompting the industry’s trade body to revise upward its forecasts for total car sales in 2013.

Full-year sales are forecast to be 2.22 million, 8.4 percent more than in 2012, the Society of Motor Manufacturers and Traders said.

“Strong business and consumer confidence in July saw the new-car market continue to rise,” Mike Baunton, the SMMT’s interim chief executive, said in a statement.

“Recently, we’ve seen a range of economic indicators point to improving conditions and our raised sales forecast emphasizes how positively we view the rest of 2013,” he said.

Sales for the year to date are 1.33 million, 10.3 percent more than at the same point in 2012.

The Ford Fiesta subcompact and Ford Focus compact were the two top-selling models in July, followed by the Vauxhall Astra and the Volkswagen Golf.

Mark Ovenden, Ford of Britain managing director, said sales to private customers are driving up the company’s share of more profitable retail sales.

Sales of the new Fiesta ST were double the projected target with more than 3,000 orders placed since the model went on sale at the end of March, Ford said.

Bright spot

The U.K. remains one of the few bright spots for automakers in Europe, where demand for vehicles is sliding to a 20-year low amid a shrinking economy and high unemployment.

Zero-percent financing and discounting by carmakers has helped sustain demand in the UK, which overtook France last year to become Europe’s second-biggest automotive market after Germany.

Car-industry executives are forecasting that the European car market will shrink by about 5 percent this year, marking the sixth annual drop, as consumers in Germany, France, Italy and Spain delay large purchases amid the region’s sovereign-debt crisis.

First-half registrations in Europe fell 6.7 percent from a year earlier to 6.44 million vehicles, industry body ACEA said last month. The June figure was the lowest for the month since 1996, and the six-month number was the least since 1993, ACEA said.