* Russian car sales down 5 pct in September after 10 pctAugust drop
* Industry group says auto sector still suffering
MOSCOW, Oct 8 (Reuters) - The outlook for the Russian carmarket remains difficult even if the pace of falling salesslowed sharply last month, a trade group said on Tuesday.
Car sales have dropped due to weakness in the $2 trillioneconomy. The Association of European Businesses (AEB), a lobbyof Europe's top auto makers, has cut its 2013 sales forecast to2.8 million vehicles, a 5 percent fall.
The AEB said car sales in September fell five percentyear-on-year, after a fall of 10 percent in the previous month.
It said 246,895 units were sold in September.
"The average temperature in the hospital is improving, butthe patient as a whole is still far from being well," said JoergSchreiber, chairman of the AEB Automobile ManufacturersCommittee.
"Such could be the 'diagnosis' for the total marketsituation in September - on a monthly basis (the) sales trendshows signs of improvement," Schreiber said in a statement.
Sales of new cars and light commercial vehicles fell 7percent in January-September from the same period last year.
Schreiber said the market still lacked sufficient strengthto achieve a stable level, a condition for moderate growth inthe future.
Russia's largest carmaker AvtoVAZ, whichFranco-Japanese alliance Renault-Nissan plansto take control of by mid-2014, last week reported first halfresults showing it swung to a net loss.
Western car makers such as General Motors, Ford and Fiat have invested heavily in Russia.