German investor sentiment continued to fall in August, a closely watched survey on Tuesday showed, adding ballast to fears Europe's economic strongman is struggling.
ZEW's economic sentiment index fell to 25.0 this month, from 29.7 points in July and 31.5 in June. This was its fifth consecutive month of declines.
"The German economic engine is still running smoothly.However, under the current geopolitical and global economic circumstances, a substantial improvement of the economic situation in Germany over the medium term is improbable. That is why economic sentiment has declined," ZEW President Professor Clemens Fuest said in a press release on Tuesday.
The German benchmark DAX index accelerated losses to trade 1.3 percent lower on the day after the data was out.