German business confidence deteriorated to the lowest level in more than a year in August, dampening optimism over the health of the euro zone’s largest economy, industry data showed on Monday.
In a report, the German research institute, Ifo said its Business Climate Index fell to a seasonally adjusted 106.3 this month, below forecasts for 107.0 and down from a reading of 108.0 in July.
The Current Assessment Index declined to 111.1 in August, disappointing expectations for a reading of 112.0 and down from 112.9 in July.
The Business Expectations Index, which measures attitudes toward business prospects over the next six months, dropped to 101.7 this month from 103.4 in July, missing forecasts for 102.0.
The monthly index is based on a survey of around 7,000 German firms in the manufacturing, construction, wholesale and retail sectors.
Following the release of the data, the euro held on to losses against the U.S. dollar, with EUR/USD shedding 0.39% to trade at 1.3189, compared to 1.3191 ahead of the data.
Meanwhile, European stock markets were mostly higher. Germany's DAX rallied 1.1%, the DJ Euro Stoxx 50 rose 1%, France’s CAC 40 picked up 1%, while London’s FTSE 100 dipped 0.1%.