Sound bites: German IFO business climate index building a better head of steam in July

Germany’s IFO index shows that the recovery is gradually getting back into its stride with a little bit more gusto. The economy is starting to build a better head of steam, thanks to the export sector and the fact that consumers seem to be gaining better confidence. If the improvements continue at this rate Germany could see growth upwards of 1% this year and 2% next year. It all still remains conditional on the rest of the Eurozone holding steady and contagion pressures easing. The Eurozone still remains the albatross round the German recovery’s neck. So far so good.