Berlin - German business confidence slumped in July, a key survey to be released Thursday is forecast to show, as a surging euro, spiralling inflation and worries about higher interest rates hit sentiment in Europe's biggest economy.
After falling to 101.3 points in June, Germany's closely watched Ifo business confidence index slipped to 100 this month, analysts' predict.
Based on a survey of 7,000 German executives, the July Ifo report could set the stage for the release this week of a batch of major economic sentiment surveys, which are likely to point to a bleaker outlook taking shape across Europe.
A report released Tuesday showed consumer confidence in Italy dropping to about a 15-year low.