The report from IHS Markit and Chartered Institute of Procurement & Supply (CIPS) showed that activity in the manufacturing sector of the UK's economy expanded more-than-expected in July.

According to the report, the Markit/CIPS Purchasing Managers' Index (PMI) for the UK's manufacturing sector rose to 55.1 in July from a downwardly revised 54.2 in June (originally 54.3). Economists had forecast the indicator to increase to 54.4. The 50 mark divides contraction and expansion.

The July improvement in the PMI was boosted by stronger inflows of new work, higher levels of production, improved job creation, longer supplier delivery times and a slight increase in inventory holdings. Meanwhile, cost pressures eased. Input prices rose at the slowest pace in over a year.