BEIJING, Aug 10 (Reuters) - China's automobile sales fell 4.0 percent in July from a year earlier to 1.89 million vehicles, an industry association said on Friday, amid rising concern over the potential fallout of a Sino-U.S. trade spat.
The China Association of Automobile Manufacturers (CAAM) said overall sales for the first seven months of the year were up 4.3 percent from the same period a year prior, totalling 16 million vehicles.
Last month's sales drop followed increases of 4.8 percent in June and 9.6 percent in May.
Auto sales in China, the world's biggest vehicle market, had been rebounding steadily since February when sales volume fell 11.1 percent.
The industry association forecasts market growth of 3 percent this year, in line with last year but significantly below the 13.7 percent gain of 2016. (Reporting by Norihiko Shirouzu; Editing by Edwina Gibbs)