UK manufacturing enjoys unexpected expansion

<p>December saw unexpected expansion in UK manufacturing.</p>

The manufacturing industry in the UK enjoyed unexpected expansion in December.

This is according to Markit Economics and the Chartered Institute of Purchasing and Supply, which found a gauge of factory activity climbed to 51.4 from a revised 49.2 in November, Bloomberg reports.

Following the news, the FTSE 100 increased by 2.28 per cent to reach a value of 6,032 at 15:30 GMT.

The upturn comes after December witnessed a significant improvement in domestic demand, with the economy showing positive signs as 2012 drew to a close.

Economist at Capital Economics Samuel Tombs noted the end of last year saw stability creeping back to the market, although he added that "with the recession in the eurozone set to deepen and consumers at home on course to be hit by a further bout of relatively high inflation", UK manufacturers could be in line for another difficult 12 months.

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