Eurozone industrial production rose a sharp 0.6 percent in the euro area in July after a 0.6 percent contraction the previous month, official figures showed on Wednesday.
The Eurostat data agency figures showed the turnaround to be largely due to a strong increase of 2.4 percent in the production of capital goods.
Intermediate goods rose 0.1 percent while durable consumer goods fell 0.5 percent and non-durable consumer goods declined by 0.6 percent.
Production of energy dropped 1.2 percent in the same period in the eurozone.
Across the 27-nation European Union, industrial output rose 1.1 percent in July after a 0.8 percent fall in June.
Among member states for which figures were available, the highest increases were registered in Lithuania, with a 4.4 percent hike, Britain, up 2.9 percent, and Denmark, up 2.3 percent.
The largest falls were in Slovenia, down 2.3 percent, the Netherlands, down 0.8 percent, and Malta, off 0.5 percent.
Economist Ben May at Capital Economics said that despite the upturn in July, the overall picture remained negative, with the economy in recession.
"July's rise .. does not alter our view that the economy as a whole is now in a technical recession. The ... monthly rise was the second increase in five months," May said.
"Nonetheless, July's increase only reversed the previous month's fall and the annual growth rate fell," he said, adding that the outlook is for further falls in the sector and economy as a whole.