MarketWatch reports that data from the Ifo Institute showed that German business sentiment worsened in August, as supply bottlenecks and concerns over the Covid-19 Delta variant clouded the short-term outlook.

The Business climate index decreased to 99.4 points in August from 100.7 points in July. This is the second consecutive decrease for the indicator after peaking at 101.8 in June. The reading missed the consensus forecast from economists (100.3).

The latest deterioration in sentiment was driven by the business expectations component, which fell to 97.5 from 101.0 the previous month.

The measurement which gauges firms' current business situation improved slightly, to 101.4 in August from 100.4 in July.