Confidence in the economic outlook for Europe gained in February to reach the highest level in three and a half years thanks to surging optimism in the region’s leading economy, Germany, according to Bloomberg. On Thursday, the European Commission reported that its index of executive and consumer sentiment added on point in February to reach 107.8, which is the highest level since August 2007. Economists had expected the index to be unchanged from 106.8.
The German economy continued to lead the region, with the gauge for confidence in the country adding over a point to reach 116.8. The sub-index of manufacturing confidence rose slightly to 6.5, while services sentiment added more than a point to 11.1. Consumer confidence gained from minus -11.2 to -10, while builders’ sentiment move up over a point and a half to -24.3. The strong German performance indicates that the country may continue to drive growth in the region.