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Key German sentiment indicator reports a welcome May boost
GERMAN corporate sentiment rose in May amid further cheer about prospects of an economic recovery, according to a key measure.
Think tank Ifo’s business climate index, based on a poll of 7,000 firms, rose to 84.2 in May from 83.7 in April.
Commerzbank economist Joerg Kraemer said: “This is a further clear signal that the German economy’s tailspin has ended. The recession has lost its velocity. It could even be over by the autumn.”
European Central Bank governing council member and German Bundesbank president Axel Weber said yesterday there were growing signs the economic decline in Germany and euro zone was ebbing: “There is definitely hope that the euro zone economy will gradually stabilise in the later part of 2009,” he said.