Manufacturing in the UK returned to growth in July for the first time in nine months, according to the Chartered Institute of Purchasing and Supply.
The index for manufacturing rose to 50.9, its highest level since May 2002, from June's 49.5.
This is the first time the sector has expanded since October. A score under 50 indicates contraction while above that level signals expansion.
The euro zone manufacturing sector contracted in July, with its PMI index hitting 48.0 from 46.6 in June, above analysts' expectations of 47.0.
In the UK the CIPS said new orders picked up for the fourth consecutive month, growing at a relatively robust pace. The new orders index rose to 51.4 from 50.7, its highest level in eight months.
But the weakening US dollar has hit exports and new business in dollar markets, but it also shaved the cost of imported US materials and components for some manufacturers.
The euro zone PMI survey said staffing levels fell further in July, in what is the 45th consecutive month of contraction of employment. The rate of cuts is easing, with the slightest fall since January 2001.
