The Economic Sentiment Indicator rose to 101 points at the end of August, from 99.6 a month earlier, the Commission said in its latest business and consumer survey.
Confidence in services sector rose significantly to 8.9 points in August, from 1.3 a month earlier, while confidence in the construction, industry and retail segments registered decreases.
Industry confidence registered the most significant decrease, from 1.4 points in July to minus 0.1 in August.
In the EU, the economic sentiment indicator decreased for the second consecutive month, to 104.6 points in August, from 105.8 points a month earlier. Business sentiment in the euro area also fell by 1.5 points on the month in August, to 100.6 points, reaching the December 2013 level.