German business mood sours

The German business climate worsened in June, a key survey published Friday showed, as Europe's largest economy faced up to a possible Russian gas stop.

The closely watched index fell to 92.3 from 93 in May, after rising for the last two months, according to the Ifo think tank.

Managers were  "markedly more pessimistic" about the outlook for Germany, said Ifo president, Clemens Fuest.

Their surveyed expectations of future economic conditions fell to 85.8 in June from 86.9 in May.

"Rising energy prices and the threat of gas shortages are of great concern to German business," Fuest said.