Bert Colijn, a senior economist at ING, said the euro area economic sentiment surged by 102.7 to 103.1 in August.
"While this recovery is modest, it does not mean growth, but at least indicates that the euro area is not nearing a recession," he said.
"The euro area industry has seen very little improvement in sentiment since the deep decline in output experienced by the industry in July was reversed in August. The decline was largely restricted to Germany and the economies of some surrounding countries. "The index is still at -5.5 for Germany below 0.7 in June, but higher than in July at -21.9."
"With rising concerns over whether domestic demand is affected by continued weakness in the global industry, the outlook for the service sector is not very positive in August."