German business confidence hit the highest level for more than two and a half years in February, as the outlook for Europe's biggest economy continues to hold up, data shows.
The Ifo economic institute's closely watched business climate index climbed to 111.3 points this month, the highest level since July 2011.
In January, the index had stood at 110.6 points.
"The German economy is holding its own in a changeable global climate," Ifo chief Hans-Werner Sinn said in a statement.
Ifo calculates its headline index on the basis of companies' assessments of their current business and the outlook for the next six months.
The sub-index measuring current business rose to 114.4 points in February from 112.4 points in January, while the outlook sub-index slipped to 108.3 points from 108.9 points.
Nevertheless, "expectations regarding future business developments ... remain optimistic," Sinn insisted.
"German businesses remain diehard optimists," said ING DiBa economist Carsten Brzeski.
Gross domestic product data for the fourth quarter came in better than expected and further positive hard data are set to follow, Brzeski said.
"Of course, there are also risks," the expert noted, pointing to an unexpected slowdown, further emerging market turmoil and a Chinese hard landing.
But such concerns should disappear quickly, Brzeski believed.
"While some performances of Germany's Olympic athletes over the last two weeks might have disappointed, the economy's performance is again en route for a gold medal," he said.
