German business confidence fell in July to its lowest level in 28 months, according to a closely watched survey.
The Ifo think tank’s index stood at 103.3, down from 105.2 in June, citing a “significant deterioration” in the manufacturing business climate.
It was the third month in a row the Ifo registered a fall in sentiment.
The news comes shortly after the Moody’s rating agency put Germany’s top AAA rating on negative outlook, citing risks from the rest of the eurozone.
The German economy is slowing, but the government said it still expected it to grow by 0.7% this year, at a time when much of the rest of the eurozone is in or near recession.
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