According to data released today by Markit, UK PMI Manufacturing increased to 52.1 points in January 2012, following 49.7 points in December 2011. Analysts expected the indicator to continue contracting at 49.8 points.

According to Mr Rob Dobson, senior economist at Markit, "January 2012 saw manufacturing kick start back into life, with output expanding at the fastest pace since March 2011 and new orders rising for the first time in seven months. Growth is nowhere near the surging highs of 12 months ago, but this is nonetheless a vast improvement on the 0.9% reduction in output seen at the end of last year. Manufacturing was a key area of weakness which caused the UK economy to contract in the final quarter, so this surprising rebound in January means a return to recession is by no means a certainty."

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(Sourced from www.nasdaq.com)