Markit Economics released its preliminary manufacturing purchasing managers' index (PMI) for the U.S. on Friday. The U.S. preliminary manufacturing purchasing managers' index (PMI) increased to 52.7 in January from 52.2 in December, beating expectations for a decline to 51.1.

A reading above 50 indicates expansion in economic activity.

The increase was driven by a faster pace of expansion in output and new business.

"The US manufacturing sector found a new lease of life at the start of the year, with growth of factory output and orders both picking up after the slowdown seen late last year," Markit Chief Economist Chris Williamson.

"It's clearly too early to declare that recent slowdown fears are overplayed, but the sector's resilience in the face of recent financial market volatility is an encouraging omen for growth and employment in the wider economy, especially as sectors such as transport and business services typically move in the same cycle as manufacturing," he added.