Boost to German morale raises hopes for end to eurozone recession

Hopes that the eurozone can pull out of its lingering recession were boosted yesterday when German business morale rose for the second month in a row.

Despite heavy flooding in parts of Germany this month, the closely watched Ifo business climate index, which surveys 7,000 firms in Europe's largest economy, rose from 105.7 to 105.9, potentially heralding much stronger growth in the second half of the year as export hopes improved sharply.

The eurozone has been stuck in recession since the end of 2011.