Despite continued incentives for buyers and a stronger economy, December U.S. auto sales came in below last year, automakers reported Jan. 5.

U.S. auto industry sales for the month were 18 million, on an adjusted annual rate, according to the research firm AutoData. That was below the 18.2 million adjusted rate for December of last year, but better than November's 16.8 million vehicle sales rate, a sign that good sales momentum should continue into 2004, according to Dow Jones Newswire.

General Motors Corp.'s December sales were down 9 percent compared with last year. The world's biggest automaker said truck sales fell 11 percent and car sales dropped 5 percent. The company said it faced an especially tough comparison to last year, when sales jumped 38 percent in December. GM led the industry with heavy incentives for buyers, including cash back and zero percent financing.

At Ford Motor Co., December sales fell 4 percent, with truck sales up 2 percent (due largely to the new version of the F-150 pickup) and cars down 16 percent.

The Chrysler Group, the U.S. unit of DaimlerChrysler AG, eked out a 2 percent sales gain for the month, with truck sales up 6 percent, while car sales fell 16 percent.

Trucks and sport utility vehicles continued to carry the load for domestic auto makers, with Ford's F-150 pickup making a very strong showing. F-series sales rose 16 percent in December, with sales of the F-150 model up 38 percent.

Paul Taylor, chief economist with the National Automobile Dealers Association (NADA), said consumers -- despite their widely reported

optimism -- are careful shoppers. Automakers have begun increasing prices on new car models, while offsetting the increases with incentives, according to Dow Jones Newswire. In 2004, they plan to ease back on incentives as they introduce a wave of new car models. But Taylor said, cautious consumers "may put off purchases or shift to other models or makes" if they don't get good deals.