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According to the latest survey from the ZEW Center for European Economic Research in Mannheim, German economic sentiment rose to 19.5 in April from 12.8 in the previous month. The rise was more than analysts' forecasts for a reading of 14.0 and was the highest level since August 2015, a 20-month high.
"The German economic situation has proved fairly robust in the first quarter," ZEW President Achim Wambach said in a statement, citing "solid figures" for industrial production, construction and retail sales.
The current situation index edged higher to 80.1 from 77.3 in March, also surpassing analysts' forecasts of 77.7. The reading was the highest level since July 2011.
The economic sentiment index for the euro area rose to 26.3 in April, up 0.7 points from the previous month. Euro area's current economic situation index climbed 4.1 points to 11.5. This was the highest since May 2008.
"The financial market experts expect this positive trend to continue," Wambach added.
