Photo

Click on photo to enlarge

(AP Photo/Keith Srakocic)

In this Oct. 29, 2009 photo, a row of Ford Mustangs is seen from the back in the lot of a Ford dealership in Wexford, Pa. Ford Motor Co. said Tuesday, Nov. 3, 2009, its U.S. sales rose 3 percent in October, a positive sign for automakers who are hoping an improving economy brings buyers back to the showroom.

After months of roller coaster-like sales, the auto industry offered signs of recovery from its yearlong slump on Tuesday, as most automakers reported higher levels of U.S. sales in October.

GM, the largest U.S. automaker, reported its first monthly sales gain in almost two years, while Hyundai and Subaru were huge winners thanks for their popular models and fuel-efficient sedans. Other top automaker — Toyota, Ford, Nissan —also posted higher sales.

The mood was in contrast to a year ago, when consumers were frightened away from showrooms by the early effects of the financial meltdown, plunging stock markets and the credit freeze.

Automakers had said this October would be a test of the strength of the auto market after the volatile effects of the government’s Cash for Clunkers program. The industry staggered through a tough September following the summer’s clunker-fueled sales surge.

The industry still has to see its way through a number of economic challenges, said Bob Carter, a Toyota vice president. Americans remain anxious about high unemployment, while consumer confidence remains dampened.

“We expect the recovery to be very gradual, extending into next year and beyond,” he said.

Demand for new cars and crossovers fueled the better October sales for General Motors Co. and Detroit rival Ford Motor Co. GM’s sales rose 4.7 percent, while Ford notched a 3-percent gain. Japanese rival Toyota Motor Corp. said its sales edged up less than a percent. Less rosy news came from Chrysler Group LLC, whose sales fell 30 percent, though they improved from September.

Ford’s top economist Emily Kolinski Morris said last month’s sales signal a real underlying demand for new vehicles after the distorting impact of the clunkers program. The economy, she said, is “in transition from recession to recovery.”

“We expect consumers to remain cautious as the recovery continues,” she told analysts and reporters during a conference call.