Investing.com - German business confidence registered an unexpected deterioration in August, falling to a 4 month low, industry data showed on Thursday.
In a report, the German research institute Ifo said its Business Climate Index fell to a seasonally adjusted 106.2 this month from a reading of 108.3 in July, missing forecasts for a rise to 108.5.
The Current Assessment Index decreased to 112.8 in August from 114.8 a month earlier, that was revised from an initial reading of 114.7. Analysts had expected the index to inch forward to 114.9.
The Business Expectations Index, which measures attitudes toward business prospects over the next six months, deteriorated to 100.1 this month from the reading of 102.1 (revised from 102.2) in July, compared to estimates for a reading of 102.5.
The monthly index is based on a survey of around 7,000 German firms in the manufacturing, construction, wholesale and retail sectors.
Immediately following the report, the euro remained higher despite the worst than expected data. EUR/USD was trading at 1.1273 from around 1.1276 ahead of the release of the data, while EUR/GBP was at 0.8529 from 0.8531 earlier.
Meanwhile, European stock markets were broadly lower. The benchmark Euro Stoxx 50 declined 0.97%, Germany's DAX shed 1.15%, France’s CAC 40 slumped 1.15%, while London’s FTSE 100 dropped 0.77%.