German business confidence continued to decline in October, a study published on Thursday by the Ifo Institute for Economic Research (Ifo) finds.

The latest Ifo Business Climate Index fell from 103.7 points in September to 102.8 points in October. The finding was based on a monthly and closely-watched survey by the Munich-based institute of around 9,000 managers at German companies from diverse sectors of the economy.

"Global uncertainties are putting a damper on German business," a statement by Ifo president Clemens Fuest read. Ifo noted that the decline in confidence in the eurozone's largest economy was once again due to both a more pessimistic assessment of the current commercial situation of businesses, as well as their future prospects.

Broken down by economic sectors, the steepest declines in business sentiment in October were once again recorded in the German manufacturing industry where the optimism of corporate leaders about their future prospects fell significantly. Ifo noted that monthly capacity utilization in the sector had slumped by 0.5 points to 87.1 points alongside a decline in new customers orders.

Current business sentiment also worsened in the German retail and service sectors, although the latter revised their outlook slightly upward. By contrast, the business climate index for construction sector companies reached a new record high for their current situation, while future expectations were marginally downgraded.