Aided by incentives and some improvement in consumer confidence, US car sales are expected to rise in July from last month but fall well below last year's levels, Associated Press (AP) reported.

But AP noted that some analysts say it's unfair to gauge the state of the industry this month by comparing it to July 2002, when automakers, led by General Motors, cleared out old models with blow-out incentives resulting in an extraordinarily high seasonally adjusted annual sales rate of 18.1 million.

"Although it's invisible in the year-to-year comparisons, a modest and somewhat irregular recovery in US vehicle sales has developed since February," David Healy, an analyst with Burnham Securities, said in his monthly sales forecast, according to AP, adding: "July sales will probably continue this pattern."

According to Associated Press, Healy notes that except for May, each month's annual selling rate this year has beaten the previous month. June's level was 16.4 million and Healy expects a rate of about 17 million when automakers report July results August 1, AP added.

Art Spinella of CNW Marketing Research told Associated Press the outlook for new vehicle sales should be positive, but CNW's non-automotive surveys indicate that most consumers say they've bought virtually every major "essential" product they need.

Put simply, Spinella told AP, many people find themselves strapped for cash.

"But there's plenty of nonessentials, they tell us, that are enticing, so expect a solid bounce for the economy soon," he added, according to Associated Press.