German business sentiment deteriorates further

German business sentiment deteriorated further in August, according to a survey released on Thursday by the Ifo Institute.

The Ifo business climate index fell to 85.7 from a revised 87.4 in July, coming in below consensus expectations of 86.7.

The current assessment index declined to 89.0 from 91.4, while the expectations gauge dipped by one point to 82.6.

The index for the manufacturing sector slid to -16.6 in August from -13.9 the month before, while the gauge for the service sector printed at -4.2 versus 1.0. The trade index fell to -25.5 from -23.7 and the construction index was -29.3 compared to -24.6 in July.

ING said: "Another sharp drop in Germany's most prominent leading indicator suggests that the economy is in for a longer period of stagnation than previously expected."