British manufacturing activity growth improved unexpectedly in January, a survey showed today.
The CIPS/RBS Purchasing Managers' Index rose to 52.8 last month, up from 52.0 in December and beating analysts' forecasts for a reading of 51.7.
Overall new orders accelerated to register 54.1 from 53.2 in the previous month. Manufacturing production achieved its first acceleration since September, with the output reading rising to 53.6 from 52.2 in December, helped in part by improved plant efficiency.
Any reading above 50 means an expansion in activity, while under 50 indicates contraction.
Economic and monetary policymakers may be concerned to see input and factory gate prices picking up again as they try to fend off above-target inflation, which rose to 3 per cent in December.
Interest rate and gilt futures fell after the data - which reinforced expectations the Bank of England may raise borrowing costs again soon after last month's surprise hike.