German business sentiment fell a shade less than expected in August as firms took a dimmer view about the coming six months following recent market turmoil, a closely watched survey shows.
The Munich-based Ifo economic research institute said its business climate index, based on a monthly poll of around 7,000 firms, registered 105.8 after 106.4 in July.
The mid-range forecast of 56 analysts polled by Reuters last week was for the index to dip to 105.4.
A separate Ifo gauge of current conditions rose to 111.5 from 111.3 in July, the institute said. A reading of 110.7 had been forecast.
The survey was the first major measure of business sentiment in Europe's largest economy since fears of a global liquidity crisis knocked financial markets earlier this month.
The survey's expectations component fell to 100.4 from a downwardly revised 101.7 in the prior month. The poll had pointed to a fall to 100.3.
