FRANKFURT, Germany (AP) — German business optimism fell more than expected in August, according to the Ifo survey published today, another sign that Europe’s largest economy faces trouble from the eurozone debt crisis.
The index released fell to 102.3 points in August, down from a revised 103.2 in July. Market analysts had expected a smaller dip to 102.6 points.
Economists have been warning that the debt crisis in the 17-country eurozone could eventually catch up with Germany. The country’s economy has over the past few years done better than the currency union as a whole, which is struggling with a crisis over too much government debt and recessions in several countries. Germany grew 0.3 percent in the second quarter and unemployment remains low.
But the debt crisis is having an increasing impact on Germany as orders fall from its eurozone trading partners, and businesses and consumers hold off on spending and investment.
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