FRANKFURT, September 2, 2008 (AFP) - The number of German new car registrations fell by 10 percent in August from the same month a year earlier, owing to the loss of two business days this year, the German automobile federation VDA said on Tuesday.

A total of 214,400 vehicles were registered last month in Germany, the biggest European economy, a statement said.

When adjusted for the two fewer days this year, the market was roughly stable however, VDA added.

The results were still disappointing though, since last year was one of the worst for the German auto sector since the country's reunification.

VDA said the domestic market was undermined by a weakening economic climate that had fueled consumer resistance.

German consumer confidence was stuck at a five-year low last month despite falling oil prices, a widely-watched survey showed.

The auto association also slammed high prices at the pump and uncertainty surrounding environmental regulations to be implemented across the continent.

In the first eight months of the year, the number of new car registrations had risen by two percent to 2.1 million vehicles, however.

VDA forecasts a total of 3.2 million for all of 2008. That would be a slight improvement over the previous year, which suffered from the effects of a three percent increase in the national value-added tax.