Germany's business climate index down 105.3

Germany's business-climate index declined in second straight month in June to 105.3 from 106.9 in May dropping German business confidence to the lowest in more than two years as Eurozone economic crisis is escalating, Germany's economic research institute IFO said Friday Germany’s economy expanded 0.5 percent in the first quarter 2012. "The German economy is clearly slowing down and a contraction in the second quarter looks possible," said Carsten Brzeski, senior European economist at ING Group in Brussels. Germany's news agency (DPA) reported analysts forecasting a slighter drop to 105.8 in the indicator, which is based on IFO surveys of executives at 7,000 companies.(QNA)