The seasonally adjusted Markit/CIPS Purchasing Manager's Index (PMI) rose to 53.0 in January, a shade higher than December's revised reading of 52.7 (originally published as 52.5). The headline PMI has remained above the neutral 50.0 mark in each month since April 2013.
Manufacturing output expanded for the twenty-third consecutive month in January, underpinned by a further increase in incoming new orders. The domestic market remained the prime driver of improved new order inflows.
There was a modest increase in new business from overseas, representing the first meaningful improvement in new export order volumes registered for five months. Companies reported increased demand from France, Germany, Japan, the Middle East, Poland and the USA.
Staffing levels rose for the 21st successive month, although the rate of increase eased to a three-month low.
Lee Hopley, chief economist at EEF, said: "Today's figures confirm the resilience of manufacturing in the face of uncertain global economic conditions. The domestic market remains a key driver of growth, but bucking recent trends, there was also a modest increase in demand from overseas. However, we will need to see this sustained in the coming months before we can call it a turnaround in the sector's export performance."
She added: "We expect manufacturing growth to continue in 2015, though at a slower rate than in 2014, as risks to growth remain finely balanced with renewed concerns about not only the Eurozone but also the pace of activity growth in China and the US."
Mike Rigby, head of manufacturing at Barclays, said: "Following manufacturing output rising by just 0.1% in Q4 last year, we shouldn't be too surprised that growth in the sector is sluggish entering 2015. Domestic demand continues to drive the growth we are seeing in the economy and with a troubled Eurozone bearing down, the exporting surge the sector needs to boost growth and help rebalance the recovery still appears to be some way off."
