The German employment situation remains bright

The seasonally-adjusted jobless rate fell to 8.7% in October, the lowest figure since 1993 and down from 8.8% in September, official figures showed.

The unemployment total fell for the 19th consecutive month in October, down 40,000 to 3.657 million.

Both sets of data were better than market expectations.

'Supporting demand'

With the US dollar continuing near record lows against the euro, analysts are fearful that it will have an adverse impact on German exporters.

This situation is exacerbated by the continuing signs of weakness in the US economy.

While German unemployment does not appear to have been affected yet, German consumers already seem concerned.

Research released on Friday indicated that consumer confidence about prospects for November was subdued because of fears over the euro and US economy, as well as inflation.

Timo Klein, senior economist at Global Insight in Frankfurt, said the latest jobless figures should help matters.