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German business confidence at 10-month high

Eberhard Kern unveils the Mercedes-Benz G63 AMG in Mumbai on Tuesday. A contraction in the German economy at the end of last year was a hiccup, analysts said on Friday, as data showed business confidence in Europe's economic powerhouse soaring this year

German business confidence rose to its highest level in 10 months in February, data showed on Friday, amid growing optimism that Europe's top economy has put the worst of the region's debt crisis behind it.

The Ifo institute's closely watched business climate index for Europe's top economy rose to 107.4 points in February -- its highest reading since April 2012 -- from 104.3 points a month earlier.

Economists polled by Dow Jones Newswires had been pencilling in a more modest rise to 14.7 points.

"The German economy is regaining momentum," said Ifo president Hans-Werner Sinn.

"Satisfaction with the current business situation continued to grow. Survey participants also expressed greater optimism about their future business perspectives," Sinn said.

Ifo calculates its headline index on the basis of companies' assessments of their current business and the outlook for the next six months.

The sub-index measuring current business rose to 110.2 points in February from 108.1 points in January. And the outlook sub-index four whole points to 104.6 points, its highest reading since July 2011.