The EU says business and consumer confidence in Europe hit a two-year high in April despite the fall-out on money markets from the Greek debt crisis.
The Economic Sentiment Indicator produced by the European Commission hit 100.6 points in April in the euro zone, rising substantially from 97.7 in March.
The figure of 100 is described as the long-term average, which means anything above it represents optimism and anything below indicates concern for where the economy is going.
Germany reported a 4.3-point increase, with France, Italy, Spain, and the Netherlands also rising.
Meanwhile, the European Central Bank has said euro zone bank lending to the private sector improved slightly in March but was still lower compared with a year earlier.
Lending was down 0.2% compared with March 2009, a bank spokesman said. This was better than the decline of 0.4% in February.
On Wednesday, the ECB said banks continued to tighten credit conditions in the first quarter and it did not see a clear improvement in the near future.
Although the central bank has provided ample amounts of cash, commercial banks still find financing conditions difficult, the ECB said.
Credit demand has also remained weak as many companies and households wait for better times before applying for new loans.
The ECB's M3 money supply indicator - which measures cash, deposits and various other financial items - declined 0.1% in March, slightly better than analysts had expected, after a decline of 0.4% in February.
Lending and money supply data reflect consumer demand and overall activity in an economy. Falling figures point to lower demand, which normally means inflation will ease.
