As the German powerhouse keeps getting stronger, so too does investor confidence as shown in the latest observations made by the influential ZEW economic institute.
The headline ZEW index of German economic sentiment rose to 20.4 in January, from 17.4 in December, beating expectations of a rise to 17.8.
Investors' views of the current economic situation rose also - the index hitting 95.2 from 89.3 in the prior month and beating forecasts of 89.8. It was the most positive assessment of the German economy since the survey began in 1991.
"The latest survey results reveal an optimistic outlook for the German economy in the first six months of 2018," said Achim Wambach, president of the ZEW.
Germany's economy has been the main engine of growth behind the eurozone's performance in the past year and the ZEW's economic sentiment indicator for the single currency bloc rose to 31.8 in January, from 29 in December, beating the forecast of 29.7.
Consumption stimulates growth
Wambach continued: "Private consumption, which was the most important driver of economic growth in 2017, is likely to continue to stimulate growth in the coming six months according to the survey participants.
"The assessment of the global economic environment in Europe and the USA is also much more favourable than it was at the end of 2017."
Markets welcome further insights into the German economy as this week progresses: Wednesday's IHS Markit purchasing manager surveys are expected to indicate further growth in January, while the IFO Institute publishes its business sentiment survey on Thursday.
The euro was mixed on Tuesday, falling 0.11% to $1.2247 against a rallying dollar. Sterling fell 0.19% to €1.1388.
Stocks were buoyant, however, with the Xetra Dax index climbing 0.84% to 13,577.