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Industry upturn in Britain and euro zone

Britain's manufacturing sector expanded for the third consecutive month in September, offering hope that the long-suffering sector had at last turned the corner.

The survey also showed manufacturing employment rose for the first time since October 1999.

The Chartered Institute of Purchasing and Supply/Reuters' Purchasing Managers' Index for manufacturing rose to 52.9 in September, the strongest figure in 16 months, and up from an upwardly revised 52.2 in August.

A score above 50 indicates expansion, while below that level signals contraction. The improvement was mirrored in the euro zone, where the PMI rose to 50.1 in September from 49.1 the month before.

Growth of new orders for goods was the principal driver of the British PMI in September and this was largely down to strong export orders.

New orders rose to 56.3 in September, their strongest since April 2002 and up from 53.8 in August. The figure for exports rose to 54.9 from 53.8 in August, helped by a weak euro and a recovering US economy. The number was the best since May last year.