U.K. manufacturing PMI surges to 28-month high : Report

LONDON
The U.K. manufacturing sector expanded at the fastest pace in over two years in July, suggesting that economic growth recorded in the first two quarters of the year looks set to continue, and firmly stamping out any expectations for action from the Bank of England
Total new orders grew at the fastest pace since February 2011 and benefited from a double boost from both the domestic and export markets, helping to lift employment numbers for a third straight month
The monthly purchasing managers index for the manufacturing sector, compiled by data firm Markit and the Chartered Institute of Purchasing & Supply, rose to 54.6 in July
That the highest level since March 2011 and compares with June's 52.9
A figure above 50 shows the sector is expanding, while a reading below that indicates contraction
The data were stronger than expected
Economists surveyed by Dow Jones Newswires last week estimated the PMI improved to 52.9
Markit also revised its June reading from an originally reported 52.5
"The breadth of the upturn in manufacturing should aid in its sustainability," Markit's senior economist Rob Dobson said
"The performance of the domestic market, which was the prime source of new contracts, is also a real positive
But let's not forget that there is also a strong export component in these positive numbers, as U.K. manufacturers benefited from the sharpest growth in new export orders for two years as key markets such as the euro zone moved closer to stabilising," Mr. Dobson said
Looking ahead to the central bank's announcement due at midday, expectations remain firmly in the "no change" camp, with eyes already on an expected formal announcement on forward guidance at next week's quarterly inflation report
 "This is clearly going to be the policy option of choice from here on as the BOE seeks to keep accommodative monetary conditions in place to ensure the recovery continues."