U.S. Car Sales Up in May

8706172521_0755ce37f1_zAccording to new reports, car sales in the U.S. were higher than expected in May due to Memorial Day promotions and a strong demand for SUVs.

Sales rose 2 percent over last May to more than 1.64 million cars and trucks, their fastest pace since July 2005, according to Autodata Corp. Analysts had expected sales to fall slightly because of lower sales to rental car companies and other auto fleets.

May is typically one of the biggest sales months of the year, as buyers flush with tax returns look forward to summer road trips. Last May, sales jumped 11 percent to just over 1.61 million, their highest monthly total in nine years.

Find out more at CBS Money Watch.

Photo courtesy of: Ray Forster