However, production is down by 0.1% compared to January 2015, reflecting a difficult year for the sector. Manufacturing output also remains 6.4% below the pre-recession peak recorded in the first quarter of 2008.
Despite this, the upturn is still welcome for the economy, following two consecutive quarters of negative movement in the second half of 2015. Sub-sector manufacturing and repair, which includes installing and maintaining machinery, was the best performing with output growth of 4.8% in January.
Mark Stephenson, UK manufacturing industry leader at Deloitte, warned "the challenges UK manufacturers are up against should not be underestimated".
"Slow global economic growth, weak Chinese trade data, downgraded UK growth forecasts, turmoil in the steel industry and the PMI at its lowest point for almost three years, are just some of the factors at play," he said.
He added that increasing production despite these factors "shows how resilient the industry is".
He continued: "[It also] signals the prospect of a more positive year ahead for UK manufacturers. This week’s EEF survey highlighted that firms expect modest growth in the coming months, and a weakened pound should boost many exporters.”
