Economic sentiment in Germany dipped in February, but remained at historically elevated levels, reflecting continued confidence in the eurozone's strongest economy.
The economic sentiment index compiled by research institution ZEW dipped to 17.8 points in February, down from 20.4 in January, but beating expectations of a fall to 16.
The assessment of current economic conditions were also slightly lower in February. The index of current conditions eased to 92.3 points from January's 95.2 and failing to match expectations of 93.9.
On a historical basis, however, the index remained near its highest levels since mid-2015, underpinned by rising inflation expectations.
Analysts suggested the dip in both indexes was likely linked to the volatile stock markets seen at the beginning of February.
The swoon in equities was significant at the start of the month and a stronger euro has limited the rebound," said Claus Vistesen at Pantheon Macroeconomics.
"Investors and analysts surveyed by the ZEW do not appear particularly concerned. Analysts’ inflation and short-term interest rate expectations rose further, albeit not by much."
Achim Wambach, president of the research institution, said: "The latest survey results continue to show a positive outlook for the German economy.
"The assessment of the current economic situation is still on a very high level and the economy is expected to improve in the coming six months.
"Economic growth in Germany is substantially driven by the very good development of both the global economy and private consumption. Inflation expectations for Germany and the Eurozone have also started to increase."
While the euro was hit by a broad-sweeping rally in the dollar and sterling, German equity investors were also unimpressed by the survey. The Xetra Dax index eased 0.07% to 12,379 in late-morning trade in Frankfurt.