Germany, Europe’s largest economy, may be on its way out of recession. Business sentiment index figures from the Munich-based Institute for Economic Research (Ifo) rose to 87.3 points in July on Friday (July 24), improving for the fourth consecutive time after reaching a seven-month high in June.

In a press release, the Ifo said: “Firms are not so unhappy with the current business situation as they were the previous month. Those surveyed are, again, less sceptical about the coming six months. It looks as though the economy is gaining traction.”

The German economy shrank by 3.8 per cent in the first quarter of this year, its worst quarterly performance since reunification in 1990, but figures for May suggested that German industry grew at its fastest rate in 16 years.