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The phrase "appears to be deteriorating" is correct and usable in written English
You can use it when describing a situation, condition, or object that seems to be declining in quality or health. Example: "The old building appears to be deteriorating, with cracks in the walls and peeling paint."
Exact(11)
Mr. Ballmer has said recently that Yahoo's business appears to be deteriorating.
Perhaps more important, confidence among both investors and consumers appears to be deteriorating.
On this measure, the US labour market appears to be deteriorating once more, and the unemployment rate as calculated by this measure is 16.5%.
Mr. Lohn said the capture and relocation, although risky, would be better than leaving the whale, whose health appears to be deteriorating, in Puget Sound.
The bank's decision to tighten credit has been watched, and debated, as much as any in its 10-year history because it comes just as economic growth appears to be deteriorating in Europe.
Even as Mr. Bernanke, the Fed chairman, said it was too early to discuss another round of stimulus, he lent credence to the gathering sense that the economy appears to be deteriorating more deeply than policy makers had feared, as he testified before the Senate banking committee.
Similar(49)
Its financial prospects, along with those of the Italian banking system, appear to be deteriorating.
Unfortunately, the results and performances of the team appeared to be deteriorating at a key time in the season".
On almost every count, at least seen from this side of the Atlantic, economic conditions appear to be deteriorating.
Relations between the government and the Haredim, some of whom do not recognise the authority of the state, have long been fractious, but appear to be deteriorating.
"Inequality is rising; basic services like health and education appear to be deteriorating outside the capital, and some share of the population remains chronically food-insecure".
More suggestions(19)
appears to be faltering
appears to be exacerbating
appears to be degenerating
appears to be escalating
appears to be accelerating
seems to be deteriorating
appears to be destroying
appears to be worsening
appears to be eroding
appears to be decaying
appeared to be deteriorating
appears to be degraded
appears to be poor
appears to be deterioration
seem to be deteriorating
appears to be growing
appears to be succeeding
appears to be slowing
appears to be trying
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Since I tried Ludwig back in 2017, I have been constantly using it in both editing and translation. Ever since, I suggest it to my translators at ProSciEditing.

Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com