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The S&P Global/CIPS UK monthly manufacturing Purchasing
Managers' Index (PMI) rose to 49.3 in February from 47.0 in the
previous month, still below the 50 threshold for growth.
Provisional "flash" PMI data published last week had pointed to
a slightly smaller rise to 49.2.
Some indicators of Britain's economic prospects - especially in
the services sector - have improved unexpectedly over the last
month or so, reducing the threat of a deep and lengthy downturn.
For now though, conditions remain challenging for manufacturers.
New orders contracted for the ninth month, reflecting the hit
from the cost of living crisis and weak demand from clients
abroad, especially in key markets such as mainland Europe, the
United States and China, S&P Global said.
But the rate of decline in new export business slowed to an
11-month low amid stabilising global economic conditions and the
positive impact of China reopening.
Overseas demand for British investment goods increased at the
fastest pace since the end of 2021.
There were also signs that the worst of the inflation surge has
passed with the PMI's gauge of input price rises falling to the
lowest level since July 2020.
The Bank of England signalled in February that it was close to
ending its run of interest rates hikes as it attempts to tame
inflation, currently running at 10.1%, back to its 2% target.
Members on the Monetary Policy Committee raised rates from 3.5%
to 4%, and markets expect interest rates to peak at 4.5% in
June.
A final PMI survey of Britain's dominant services sector is due
to be published on Friday.
(Reporting by Suban Abdulla; Editing by Susan Fenton)
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