LJUBLJANA, Feb 22 (

) -

's business sentiment index rose for the fifth straight month in February, reaching 10.5 points which is the highest level since April 2008 when it stood at 12.6 points, the statistics office said on Wednesday.

Analysts said sentiment could improve further in the coming months though it is unlikely to rise above the April 2008 level reached when the economy appeared very robust before the global financial crisis struck at the end of that year.

"Economic expectations in Europe and in

, which is Slovenia's largest trading partner, are improving, so I expect the confidence to remain at its present level or rise further in the months to come,"

from the treasury sector of

told Reuters.

The index rose by 0.4 of a point versus the previous month and was up 7 points compared to February 2016, due to improved sentiment in manufacturing, services and construction.

Consumer confidence dropped on a monthly level as expectations regarding employment, savings, household financial conditions and the economic situation in the country worsened.

Retail confidence fell on an annual level, mainly due to deteriorating expectations regarding employment and sales prices.

Slovenia, which narrowly avoided an international bailout for its banks in 2013, returned to growth a year after that and the government expects its export-driven economy to expand by 2.9 percent this year from 2.3 percent in 2016.

The country exports about 70 percent of its production, mainly to other

states. Exports include cars and car parts, pharmaceuticals and household appliances. (Reporting by Marja Novak; Editing by

)