The Markit/CIPS manufacturing Purchasing Managers' Index (PMI) hit  62.0 in January from an upwardly revised 58.7 in December.

That was the highest reading since the survey began in 1992 and considerably higher than the consensus forecast of 57.9.Good news as the Manufacturing  counts for around 13% of the UK Economy, following the bad GDP figures in the last quarter of 2010 and despite the Egyptian crisis still in full flow, the UK stock market regained a little upward momentum.

This could bring forward the possibility of a rate hike however, some economists seeing it coming as early as February. There are currently two members of the Bank of England nine member Monetary Policy Committee voting for an increase in rates to curb the upward march of inflation and once the rate increases start it will be more likely be little and often.