New data shows morale among German consumers has declined for a third month as the influx of refugees raised households' concerns that unemployment will rise. As Hayley Platt reports French consumer confidence also dipped unexpectedly in October.
Police stand and watch as another 2,000 migrants cross into Germany from Austria. The latest arrivals will be distributed across Germany, along with up to a million others who are expected to have arrived by the end of the year. The influx is having big repercussions - even on the morale of consumers. Research group GFK says the crisis is making Germans nervous about their jobs. The index has now fallen for a third month and is at its lowest level since February . But CMC Markets Jasper Lawler isn't too worried, even with a slowing China and the VW crisis. (SOUNDBITE) (English) CMC MARKETS, MARKET ANALYST, JASPER LAWLER, SAYING: "There is some residual concern perhaps that the Federal reserve is going to hike rates sometime this year and affect global confidence so there is a number of factors involved I think so I think still Germany's economy is still one of the strongest in Europe." There are job worries in France too. And the INSEE consumer confidence index also dipped unexpectedly from a near eight year high. (SOUNDBITE) (English) CMC MARKETS, MARKET ANALYST, JASPER LAWLER, SAYING: "There are some big structural problems going on in France. Particularly inside the labour market. It is just too difficult to have people fired from a company. It's very difficult to switch jobs." Italy again bucked the trend. According to ISTAT morale among businesses was at its highest level since 2007, while consumer confidence hasn't been better since 2002. The euro zone's third largest economy only emerged from recession this year. The Bank of Italy hopes the growing optimism will encourage investment, although a slowing China remains a concern.