Britain's manufacturing sector returned to growth last month after contracting in July as demand and output recovered, a key industry survey has shown.
The CIPS/Reuters purchasing managers' index - a composite measure of activity in the sector - rose to 51 last month from an upwardly revised 49.1 in July. A number above 50 denotes expansion, a number below that level a contraction.
The new number was the best since May and was significantly above the average forecast from City economists of 49.4.
The survey's total orders index also put in its best showing for two months, rising to 51 from 49.5 in July. Export orders also rose, to 50.8 from 49.4, driven mainly by fresh demand from the United States rather than the rest of Europe.
The output index rose to 55 from 50.2 in July, the strongest number since May.
The closely watched purchasing managers' survey from the Chartered Institute of Purchasing and Supply (CIPS) will soothe fears that the July downturn was the beginning of a trend for the hard-pressed sector.
It will also raise hopes that official data on manufacturing output, which showed its biggest monthly fall in June for 13 years as the Queen's jubilee celebrations and World Cup affected production, will bounce back.