Investment analysts were just a bit more optimistic about the German economy in January despite the prospect of a turbulent year in politics.
The ZEW think tank said Tuesday its index of economic sentiment rose by 2.8 points to 16.6 over December's reading.
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ZEW President Achim Wambach called it "a leap of faith for 2017."
The institute credited improving growth in Germany and stronger industrial production in the 19 countries that use the euro.
Germany and Europe are experiencing an economic recovery but face an uncertain political year. Elections in France, the Netherlands and Germany will give anti-European Union forces a chance to test their appeal to voters. Meanwhile, talks are expected to start on Britain's departure from the EU.