Recession clouds lift in Europe

AMSTERDAM: European confidence in the economic outlook increased more than economists forecast in July, adding to signs the deepest recession in more than six decades may be bottoming out. An index of executive and consumer sentiment in the 16 nations that use the euro rose to 76, the highest since November, from 73.2 in June, the European Commission in Brussels said. Economists had predicted an increase to 75, according to the median of 24 estimates in a Bloomberg survey.

The growing confidence is the latest evidence that Europe may have seen the worst of the recession as indications of a global recovery improve prospects for the region. Stocks rose around the world as companies from Alcatel-Lucent to Honda Motor reported earnings that beat analysts��� estimates.

���July���s rise in the economic sentiment index is another encouraging sign that the euro-zone recession is easing,��� said Jennifer McKeown, an economist at Capital Economics in London. ���But it might still be too soon to hope for activity to actually expand.���

Paris-based Alcatel-Lucent, the world���s largest supplier of fixed-line phone networks, on Thursday posted its first profit in 11 quarters, aided by cost cuts. Group Danone, the largest yogurt maker, said last week that first-half profit increased 3% as consumers bought more infant formula.