From second bottom six days ago, the six-points haul at Blackburn and now against City have lifted Newcastle into 11th position.
Incredibly, this was Newcastle's first league win at St James' Park since they beat Liverpool on 5 March, while worryingly for Stuart Pearce, City suffered their third straight defeat in the last week.
That is now successive1-0 Premiership defeats for City, with Owen scoring his first home goal for United after 16 minutes with a typically clinical finish.
The England man was played through in the inside right channel by Lee Bowyer and shot across David James into the bottom corner of the net.
Yet, that could so easily have been an equaliser as City should have gone ahead with their first attack after six minutes.
The hard-working Joey Barton's free-kick from the right was inch-perfect for Antoine Sibierski, but the big Frenchman's downward header from just seven yards out, smashed off the left foot of Shay Given and was cleared. It looked easier to score.
Inspired by the magnificent Charles N'Zogbia, Newcastle stroked the ball around superbly while City appeared to lack ambition, particularly in the opening half.
Skipper Alan Shearer bulldozed the City defence and Owen is fitting in well as he learns the way his new team-mates play.
Shearer headed a N'Zogbia cross on to the roof of the net before Shearer was presented with two good opportunities in the final five minutes of the half.
A mistake by United old boy Sylvain Distin saw Shearer release Owen in a straight fight with David James and the big keeper won out this time as he forced his effort behind.
Owen got in again and fired a shot from the right narrowly over the bar. City were better after the break - they had to be. Richard Dunne headed over as City saw a lot more of the ball without creating any clear-cut chances.
At the other end the lunging Owen just failed to divert a N'Zogbia cross into the net and with the last kick of the game substitute Shola Ameobi should have done better than fire wide.
MAN OF THE MATCH: Charles N'Zogbia (Newcastle) - Had probably his best game in a Newcastle shirt, creating several openings for Owen and Shearer with his clever prompting.