German business confidence rose for the third consecutive month in January, jumping to a more-than-forecast 104.2 points, the Munich-based Ifo economic institute said Friday.
Analysts had predicted that the closely watched survey would show the mood among top executives in Europe's biggest economy climbing to 103, from a December reading of 102.4.
Based on a survey of 7,000 executives, the Ifo index's gain followed signs of cautious optimism about the economic outlook for Germany and its partners in the 17-member eurozone.
"The crisis is over. At least in Germany," said ING Bank economist Carsten Brzeski.
The rise in the index followed strong gains in the indicator's gauges measuring both current business conditions and expectations for the nation's economy six months down the track.
The Ifo indicator now stands at its highest level since June.
Germany's central bank, the Bundesbank, said this week that indications had already emerged to show that the nation economy had rebounded from last year's slowdown as a result of the recession and fiscal austerity gripping the eurozone.