Euro zone economic confidence rose to the highest in more than two years this month after booming exports drove economic growth.

An index of executive and consumer sentiment gained to 101.8 in August, from 101.1 in July, the European Commission said, according to Bloomberg News. That's the highest since March 2008.

A Bloomberg News survey of economists forecast a level of 101.6.

Germany, Europe's largest economy, posted its fasted economic growth in 20 years in the second quarter, thanks to strong global demand for its exports.

Still, a faltering U.S. economy and a drive towards austerity among European governments may hit the euro zone's economic performance.

"There's no reason why the euro region would be able to decouple from a global slowdown," David Kohl, deputy chief economist at Julius Baer Group in Frankfurt, told Bloomberg News. "It will be a bumpy road."

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European gains are usaully made on the back of American taxpayers. The US needs to stop its massive subsidy of European defense, and stop pumping $Billions into Euro banks when ever there is financial trouble in Europe. Level the playing field and see how well Europe does.

August 30 2010 at 1:39 PM Report abuse rate up rate down Reply