(August 24, 2010) J.D. Power and Associates predicts August will see auto sales dip slightly from July, but remain above the selling rate from the first half of 2010.

The California research and marketing firm predicts August new-vehicle retail sales will be 857,000 units, which represents a seasonally adjusted annualized rate (SAAR) of 8.9 million units, down from July's selling rate of 9.2 million units.

The firm says incentives are down 8% from July, "But retail light-vehicle sales in August are showing relative strength," said Jeff Schuster, executive director of global forecasting in a release. He said that while retail sales are likely to be down 22% from August last year.

"If the distortion from 2009's CARS program is removed, August 2010 is actually up about 14% on a selling day-adjusted basis, signaling continued improvement year over year."