German business confidence rose for the fourth straight month to hit a 10-month high in February, as expectations for a return to growth in the first quarter of this year fueled optimism.

The IFO Institute's monthly survey of 7,000 business executives is closely watched as an early indicator of current conditions and business expectations for Germany, the Eurozone's economic motor.

All the data contained in this month's report beat consensus expectations.

The IFO's main business climate gauge rose to 107.4, beating consensus estimates of 105.0. The prior month's data was revised up to 104.3, from the previous reading of 104.2.

The sub-index which measures executives' assessment of current conditions jumped to 110.2, well ahead of the 108.5 forecast. The prior month's reading ticked up to 108.1 from 108.0.

The expectations component increased to 104.6. Market experts had expected a 'print' of 101.3. The January figure was also increased to 100.6, from January's level of 100.5.

JM

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