Key German business index falls
NEW YORK - The Associated PressA key index of German business optimism fell in June, signaling that the eurozone debt crisis could slow Europe’s biggest economy in coming months.
The Ifo index fell to 105.3 in June from 106.9 the month before. Market analysts had expected a dip to 105.6.
Germany’s export-oriented economy is doing better than many others in Europe and grew 0.5 percent in the first quarter from the quarter before. The survey suggests that things could get more difficult in coming months.
It is feared the eurozone government debt crisis could spread as banks remain weak and and economies slow down due to government efforts to quickly reduce deficits. Germany’s biggest trade partners are other eurozone countries.