German Business Confidence Unexpectedly Drops as Debt Crisis Rattles Euro

German business confidence unexpectedly fell after Europe’s debt crisis rattled financial markets and fueled concerns about the future of the euro. The Ifo institute in Munich said its business climate index, based on a survey of 7,000 executives, eased to 101.5 from 101.6 in April. Economists expected an increase to 101.9, according to the median of 37 forecasts in a Bloomberg News survey. Ifo’s gauge of executives’ expectations fell to 103.7 from 104 The euro has plunged 6.5 percent against the dollar in the past month as policy makers’ pledge of a 750 billion-euro ($936 billion) safety net failed to allay investor concern that Europe’s monetary union could collapse. While a... more story