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.<br /><br />Think tank Ifo&rsquo;s business climate index, based on a poll of 7,000 firms, rose to 84.2 in May from 83.7 in April.<br /><br />Commerzbank economist Joerg Kraemer said: &ldquo;This is a further clear signal that the German economy&rsquo;s tailspin has ended. The recession has lost its velocity. It could even be over by the autumn.&rdquo;<br /><br />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: &ldquo;There is definitely hope that the euro zone economy will gradually stabilise in the later part of 2009,&rdquo; he said.