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."
European Economic Confidence Gains After Export Growth