- Annamaria Grimaldi, an economist at Intesa Sanpaolo SpA
German business confidence fell by more than expected in June, reinforcing fears that the euro zone's largest economy is slowing. Ifo business climate index, which is based on a survey of 7,000 businesses, slid to 105.3 points from 106.9 points in May. "The German economy is slowing despite extremely accommodative interest rates and recent wage growth," said Annamaria Grimaldi, an economist at Intesa Sanpaolo SpA in Milan. "Demand is contracting all over Europe."
"Germany is not an island of the blessed," said Jens-Oliver Niklasch, an economist at Landesbank Baden-Wuerttemberg in Stuttgart."As long as the economic outlook doesn't get better for the euro area as a whole, and especially for the southern countries, Germany will take a hit as well."
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