Investing.com – Manufacturing activity in the U.K. improved more-than-expected in January, expanding for the first time in four months, official data showed on Wednesday.
In a report, market research group Markit said that its U.K. manufacturing PMI rose by 2.4 points to a seasonally adjusted 52.1 in January from a reading of 49.7 in December, whose figure was revised up from 49.6.
Analysts had expected the manufacturing PMI to ease up by 0.4 points to 50.1.
On the index, a reading above 50.0 indicates industry expansion, below indicates contraction.
The U.K. manufacturing sector started 2012 on a positive footing. Output expanded at the fastest pace since last March, new orders rose following a period of contraction and payroll numbers stabilized.
Cost pressures continued to ease, as average input prices fell for the third straight month.
Commenting on the report, David Noble, chief executive officer at the Chartered Institute of Purchasing & Supply, said, “The U.K. manufacturing sector has sprung to life in the first month of 2012 to defy any economic gloom, but it is too early to say whether this trend is sustainable.”
“In the long-term, it’s looking like businesses will need to refocus on emerging growth markets outside the weaker euro zone to achieve sustainable growth even though spending was at a higher level in the UK compared to last month,” Mr. Noble added.
Following the release of the data, the pound held on to gains against the U.S. dollar, with GBP/USD climbing 0.11% to trade at 1.5778.
Meanwhile, European stock markets were broadly higher. The EURO STOXX 50 rallied 1.65%, France’s CAC 40 jumped 1.6%, London’s FTSE 100 rose 1.25%, while Germany's DAX surged 1.65%.
In a report, market research group Markit said that its U.K. manufacturing PMI rose by 2.4 points to a seasonally adjusted 52.1 in January from a reading of 49.7 in December, whose figure was revised up from 49.6.
Analysts had expected the manufacturing PMI to ease up by 0.4 points to 50.1.
On the index, a reading above 50.0 indicates industry expansion, below indicates contraction.
The U.K. manufacturing sector started 2012 on a positive footing. Output expanded at the fastest pace since last March, new orders rose following a period of contraction and payroll numbers stabilized.
Cost pressures continued to ease, as average input prices fell for the third straight month.
Commenting on the report, David Noble, chief executive officer at the Chartered Institute of Purchasing & Supply, said, “The U.K. manufacturing sector has sprung to life in the first month of 2012 to defy any economic gloom, but it is too early to say whether this trend is sustainable.”
“In the long-term, it’s looking like businesses will need to refocus on emerging growth markets outside the weaker euro zone to achieve sustainable growth even though spending was at a higher level in the UK compared to last month,” Mr. Noble added.
Following the release of the data, the pound held on to gains against the U.S. dollar, with GBP/USD climbing 0.11% to trade at 1.5778.
Meanwhile, European stock markets were broadly higher. The EURO STOXX 50 rallied 1.65%, France’s CAC 40 jumped 1.6%, London’s FTSE 100 rose 1.25%, while Germany's DAX surged 1.65%.