BERLIN, Oct 28 (Reuters) - - Morale among German consumers declined for the third month running heading into November as an
influx of refugees into the country raised households' concerns that unemployment will rise, market research group GfK said on Wednesday.
The GfK consumer sentiment indicator, based on a survey of 2,000 Germans, fell to 9.4 points heading into November from 9.6 points a month ago - the lowest reading since 9.3 in February.
The reading was in line with the Reuters consensus forecast. German consumers' economic concerns grew markedly, with the sub-index for economic expectations declining sharply to -2.9 points from 6.4 points, slipping below zero for the first time since May 2013 and hitting its lowest since January 2013.
"The downward trend in the economic outlook goes hand in hand with the concern felt by many German citizens that the situation in the labour market will worsen in the coming months," GfK analyst Rolf Buerkl said.
GfK examined the reasons for the anxiety about unemployment.
"The results were unequivocally clear, as 70 percent of respondents who believe that unemployment will increase over the next few months cited the refugee crisis ... as the primary cause for their concerns," said Buerkl.
Germany is taking in more migrants than any other EU state.
It expects 800,000 to 1 million people, many from war zones in the Middle East, Africa and Afghanistan, to arrive this year.
Consumers' income expectations were steady on the month but their willingness to buy fell to the lowest in a year.
"Future consumer sentiment will predominantly depend on whether the uncertainties currently surrounding the progression of the labour market continue to intensify," said Buerkl.
NOTE - The consumer climate indicator forecasts the development of real private consumption in the following month.
An indicator reading above zero signals year-on-year growth in private consumption. A value below zero indicates a drop in comparison with the same period a year ago.
According to GfK, a one-point change in the indicator corresponds to a year-on-year change of 0.1 percent in private consumption.
The "willingness to buy" indicator represents the balance between positive and negative responses to the question: "Do you think now is a good time to buy major items?"
The income expectations sub-index reflects expectations about the development of household finances in the coming 12 months.
The additional business cycle expectations index reflects the assessment of those questioned of the general economic situation in the next 12 months.