The eurozone economy made a promising start to the year according to the region's purchasing managers, as business activity accelerated to a near 12-year high thanks to strong performances in its core economies.
European Central Bank policymakers were certain to be eyeing the data with interest as the robust pace of growth was accompanied by the highest price pressures seen in nearly seven years.
The headline composite purchasing manager index (PMI), which combines both the manufacturing and service sectors, rose to a 139-month high of 58.6 in January, up from December's 58.1 and beating forecasts of a dip to 57.9.
The manufacturing PMI continued to show increases in factory output at their highest levels since 2000, although in January the pace moderated fractionally.
January manufacturing PMI dipped to 59.6 from 60.6 in December, missing market expectations of 60.3.
New business also continued to rise a robust pace but, again, at a slightly slower pace than in the previous month.
Any moderation in the pace of growth in manufacturing was offset by gains in services. The services index rose to 57.6 in January from 56.6 in December - its fastest pace since August 2007.
Companies across both sectors were more optimistic about the outlook for 2018 with business expectations rising to an eight-month high.
"The PMIs continue to tell a story of a record-breaking cyclical upturn in the eurozone economy," said Claus Vistesen, chief eurozone economist at Pantheon Macroeconomics.
Price pressures intensified, however, reflecting not only higher costs but also improving pricing power as demand outpaced supply.
Average input costs and selling prices for goods and services both showed their fastest monthly acceleration since April 2011.
Chris Williamson, chief business economist at IHS Markit said: “Price pressures are running at their highest for almost seven years, accelerating further at the start of 2018.
"With such a strong start to the year, expect to see forecasters mark up their expectations of eurozone growth and inflation in 2018, and for policymakers to sound more hawkish.”
The euro climbed 0.37% against a weaker dollar to $1.2343, but failed to make headway against the pound and yen.
Stock indexes across Europe were broadly lower – the EuroStoxx 50 eased 0.12% to 3,665.