UK manufacturing expands for second month Sterling's weakness, plus indications of firmer demand in key export markets such as the eurozone, notably Germany, and emerging markets such as China should also help lift sales in coming months. A subindex measuring change in output compared to the previous month climbed to 54.2 from 53.4 in December, despite a reported hit from poor weather, while new orders edged up for the third month in a row, helped by the domestic market. David Noble, chief executive of the Chartered Institute of Purchasing & Supply, said: "On the surface this is good news for manufacturing and should be welcomed. However underlying factors suggest deep rooted problems remain. Until these are resolved, the sector will continue to be pulled from pillar to post. He said negative factors, particularly economic weakness in Europe, had been offset by the strength of domestic orders, particularly in consumer goods, which alongside intermediate goods are driving expansion in manufacturing activity. Companies put the 13th consecutive fall in new export orders down to weak demand from the Continent. On a more cautionary note, Markit said the impact on the wider economy from manufacturing would be limited. "With manufacturing only accounting for around 10pc of the economy, the survey will do little to assuage fears of a triple-dip recession unless accompanied by an improvement in the services sector, which contracted at the fastest rate for two years in December," Mr Dobson said. Rob Wood of Berenberg Bank said despite the good news on output growth, the underlying "remains one that the UK economy is bouncing along the bottom, it's moving sideways."