High oil prices slash German business confidence: Ifo

FRANKFURT (AFP) — Germany's key business climate index fell to an 18-month low point in June, with high oil prices pulling the rug from under the feet of Europe's biggest economy.

The index calculated by Munich-based economic research institute Ifo dropped sharply to 101.3 points from 103.5 points in May, underscoring the results of a separate eurozone purchasing managers' index that showed activity contracting for the first time in almost five years.

The fall in Ifo's index indicated German firms "have assessed their current business situation clearly less favourably than in the previous month, and they are more sceptical regarding the six-month outlook," a statement quoted president Hans-Werner Sinn as saying.

Ifo's current situation index slipped to 108.3 points in June from 110.1 points, while the six-month expectations indicator dropped to 94.7 points from 97.2 points one month earlier. ...