morning GBP fundamental

The UK manufacturing sector has sprung to life in the first month of 2012 to defy any economic gloom’ – David Noble, chief executive at Cips

U.K. manufacturing sector expanded in January

Impact: High

U.K. manufacturing sector expanded in January, said Markit on Wednesday. The manufacturing purchasing managers’ index rose to 52.1 from 49.7 in December. A reading above 50 signals expansion.

‘The UK 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,’ said David Noble, chief executive at Cips.

‘This suggests that there is a very decent chance that the manufacturing sector will return to growth in the first quarter of 2012 after contributing significantly to overall GDP contraction of 0.2% quarter-on-quarter in the fourth quarter of 2011,’ said Howard Archer at IHS Global Insight.

‘However, whether or not the UK can avoid further contraction in the first quarter will depend mainly on what happens to services output and consumer spending.’

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