the increase in the Ifo business climate index in July for the third month in a row fuelled hopes of a recovery in Europe's largest economy. "Taken together with initial signals worldwide this creates hopes that things are going upwards," a spokeswoman for the economy ministry said. The Ifo index rise to 89.2 in July from 88.8 in June was the third consecutive monthly rise, which the Ifo institute says heralds an economic upturn. However, the extent of the increase fell short of economists' expectations.