German business confidence at 2-year low amid energy worries

BERLIN (AP) — A closely watched survey shows that German business confidence has fallen more than expected this month, hitting a two-year low amid worries about higher energy prices and the prospect of a possible natural gas shortage. The Ifo institute said Monday that its monthly confidence index, a leading indicator for Europe’s biggest economy, dropped to 88.6 points in July from 92.2 last month. It was the second consecutive fall and took the index to its lowest level since June 2020. Economists had predicted a drop to 90.1. The decline was led by a drop in companies’ outlook for the next six months, but they also were less satisfied with their current situation.