Euro zone industrial production saw its strongest monthly gain on record in January, providing some welcome good news for the region.

European Union statistics agency Eurostat said industrial production across the 16-nation euro zone spiked a better-than-expected 1.7% in January. Analysts were looking for a 0.7% monthly gain.

On an annual basis, industrial production rose 1.4%, compared with December's upwardly revised 4.1% fall.

'Recent mixed data has led to increased concerns over the strength and sustainability over the Euro zone's recovery, but the manufacturing sector at least is seems to be doing pretty well at the moment,' said Howard Archer, IHS Global Insight's chief UK economist.

'Indeed, January's jump in industrial output boosts hopes that it can make a significant contribution to Euro zone GDP growth in the first quarter.'

'However, question marks remain over the strength of demand for manufacturing goods further out, particularly given that stimulus measures such as car scrappage schemes will be increasingly withdrawn,' he added.

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