U.K. manufacturing PMI rose more strongly than expected in June, to 47.0 against our survey median for an improvement to 46.7 from 45.4 in May. The reading suggest that the sector is still contracting but the factory output index rose to 52.1 from 48.1, the first reading above 50 since March 2008. Manufacturers have run down inventories and the improvement now seen is likely to be a reaction to re-stocking, but also to tentative signs of improvement to the economy at large.