Pat Dollard

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BERLIN (AP) – A survey shows that German investor confidence has dropped for the third consecutive month amid fears about Europe’s debt crisis and its implications for the economy.

The ZEW institute said Tuesday that its confidence index, which measures market experts’ economic outlook for the next six months, was down 7.5 points in July to 21.2.

That was less sharp than the 17-point drop the index suffered in June but left it below the historical average of 27.4 points.

Germany has Europe’s biggest economy.

LISBON, Portugal (AP) – Moody’s rating agency has cut Portugal’s credit rating, saying feeble growth and rising debt over the past two years will continue to sap its fiscal strength.

Moody’s Investors Service on Tuesday downgraded Portugal’s government bond ratings to A1 from Aa2, reflecting international concerns about the eurozone country’s ability to pay its steep debts.

The move deepens the country’s financial woes because foreign lenders will likely demand higher returns for the risk of loaning it money.

The center-left Socialist government has enacted an austerity package to slash the debt but has struggled to find new sources of economic growth.