Car sales in Western European fell during September according to the latest analsysis, as experts pointed to continuing uncertainty in the region's economy.

The European Automobile Manufacturers Association (EAMA) said that sales dipped by 0.6 per cent with rising levels of unemployment being held partly responsible for the slowdown in consumer spending.

PSA Peugeot Citroen, Renault and Nissan were among the major losers in the industry, as total sales for the month fell by around 10,000 to 1.35 million vehicles.

"This marginal drop points to a flat market situation in an economic context that remains uncertain in a number of countries,' the association told Bloomberg.

When the figures included the ten new additions to the EU the fall was even more pronounced, dropping by 1.5 per cent.

Nevertheless the year-to-date totals remain encouraging, with sales up 1.5 per cent to 11.2 million vehicles in comparison with last year.

Experts say the biggest problems ahead for the market are likely to be German and French unemployment - in some of the biggest European markets - and also the likelihood of rising interest rates in the UK.