STORY: Euro zone business activity made a surprise return to growth in January.
S&P Global's flash Composite Purchasing Managers' Index - or PMI - climbed to 50.2 this month from 49.3 in December.
Anything below 50 is seen as a contraction, but above that means growth.
The index released Tuesday (January 24) is seen as a good measure of economic health.
January was the first time it had been above the 50 mark since June, and was ahead of analyst projections.
Firms also raised headcount at a faster rate this month - which could be a sign of growing optimism.
The employment index rose to a three-month high.
The bloc's key services index also surprised when it rose to a six-month high.
Manufacturing was still below the 50 mark however - coming in at 48.8 in January.
Though that was slightly better than a month before.
The bloc's modest growth could suggest its economic downturn is not as deep as feared.
Though analysts still predict a technical recession - that's two straight quarters of contraction.
Inflation is still a key issue in the bloc and the European Central Bank wants to fight it.
A Reuters poll showed market watchers believe the ECB will do 50 basis point interest rate rises at each of its next two meetings.