German business confidence eased only slightly in March, according to a closely watched survey.
But the report by Munich's Ifo think-tank also showed some concern about the prospect of higher interest rates the impact of Japan's earthquake.
The Ifo business climate index, based on a monthly survey of some 7,000 firms, inched down to 111.1, compared with a forecast for a drop to 110.5.
Ifo said the survey's results were dented by its forward-looking expectations component and the fact that half of the survey's responses came in after the disaster at Japan's Fukushima nuclear plant began to unfold.
Analysts said there may be some worries about orders to and from Japan in the near-term, although sales there are only a tiny proportion of German exports and the concern was likely chiefly about the broad impact on the global economy. Ifo's expectations index fell to 106.5 from 107.9 in February.
Germany has recovered more quickly than expected from a recession in 2009 that was its deepest since World War Two, and by the fourth quarter of last year its economy was growing by 4% year-on-year.
That growth is at the heart of the case for a rise in European Central Bank rates which would come at a time when other euro zone member economies are struggling with a sovereign debt crisis and slashing public spending in response.
The prospect of a rise in the cost of companies' borrowing fed into the slight worsening of sentiment, but Ifo economist Klaus Abberger said German companies are well-placed to cope with both higher rates and a higher oil price.
