Today's PMI numbers show manufacturing activity stopped plummeting and returned to growth in July.
The index crossed the all-important 50 mark (which indicates expansionary activity) for the first time since March 2008, rising to 50.8.
Our Chief Economist Stephen Radley commented on today's figures:-
The rebound in manufacturing activity, from extremely low levels earlier in the year, has to be good news and the pick up in new orders is particularly encouraging. Most manufacturing indicators now seem to be moving in the right direction, so the second half of this year should be notably better than the first half. However, a lot of uncertainty still remains and manufacturers are likely to be cautious about calling an end to the downturn.
The news sent the pound to a 10-month high against the dollar.
We wait to see if the survey has any impact on the MPC's decision to extend its QE programme on Thursday...