The UK's manufacturing sector appears to have returned to growth during January 2012, meaning a double-dip recession is far from inevitable.

Orders rose for the first time in six months, helping the Markit/CIPS Manufacturing Purchasing Managers' Index to rise to 52.1 - the highest level since May 2011.

This was up from a score of 49.7 in December 2011. Any score below 50 on the index points to a contraction in the sector.

Markit economist Rob Dobson said the rebound was "surprising", and gives businesses hope that the economy can return to growth during the first quarter of 2012.

Preliminary growth figures from the Office for National Statistics suggest the UK economy contracted by 0.2 per cent between October and December.

However, John Leech, head of KPMG's automotive practice, served to temper the optimism, claiming that manufacturers are still battling with a fluctuating UK economy

"Most are feeling the impact of a weakening exports market to the eurozone, so the short-term outlook remains challenging for UK manufacturers," he claimed.

He said there is hope for the sector, as inflation falls and weakening of the sterling and euro currencies make UK exports to emerging markets more competitive.

"One successful business strategy for companies in these volatile times is to find new customers in emerging markets and design products for them," he suggested, citing the example of Jaguar Land Rover.

Posted by Dan Smith