German economic confidence rose in March, its fourth consecutive monthly gain, according to a closely followed survey published Tuesday by the ZEW Center for European Economic Research in Mannheim.
But the survey revealed continued pessimism about the euro zone.
The ZEW indicator of economic sentiment for Germany has now reached its highest level since June 2010, while the survey's assessment of Germany's current economic situation remains almost unchanged in March.
Good industrial production data for January seem to convince the financial market experts that recently reduced growth dynamics will not seriously affect the overall robust business activity in Germany, ZEW said in a statement.
The survey's indicator for the current economic situation in the euro zone has increased by 0.7 points to minus 48.4 points.
Currently, it seems as if the crisis in the euro zone has taken a pause for breath. In Germany, due to the good employment situation, domestic demand is likely to continue to stimulate growth. Nevertheless, risks remain due to the low business activity in important European countries and the disruptions in the banking sector, ZEW President Wolfgang Franz said in a statement.