German index beats expectation in good sign for eurozone

FRANKFURT, Germany (AP) - A closely watched index of German business optimism rose more than expected in May, sending a positive signal about the 19-country eurozone economy.

The Ifo institute business climate index published Wednesday rose to 107.7, up from 106.7 in April. The index combines the views of business executives on how things are now, and on how they see the coming months.

Market analysts had expected a May reading of only 106.8. Views of current conditions and future expectations both rose.

Germany is the biggest of the countries that use the euro currency and is leading a modest recovery for the currency union, with low unemployment and more confident consumers. Germany grew 0.7 percent in the first three months of the year, helping pull the eurozone to growth of 0.5 percent.