London, March 1 (Bloomberg) -- U.K. manufacturing grew in February for the first time in a year, a survey showed, suggesting a slowdown in industry may be coming to an end. An index of manufacturing rose to 50.1 last month from 46.5 in January, the Chartered Institute of Purchasing and Supply said. Anything below 50 means manufacturing is contracting; anything above, that it's expanding, according to CIPS. Today's index was the first to show an expansion since February 2001. Manufacturing may be recovering after shrinking every quarter of last year. The U.S. and continental Europe together buy about three-quarters of the U.K.'s exports, and the economies of both show signs of growth. The U.S. expanded 1.4 percent in the fourth quarter, the fastest pace in a year. German business optimism rose in February to the highest in six months. ``I sense an improving situation for manufacturing,'' said Mike Kroker, the marketing director of Thermatec Engineering Ltd., which sells welding equipment to companies including BAE Systems Plc. ``We're getting enquiries for more technology advanced equipment. I'm optimistic for the forthcoming year. It's looking good.'' The report bolsters a report last month that manufacturers' orders fell more slowly in February than January. A balance of orders rose to minus 29 from minus 31, the second month the index had risen, the Confederation of British Industry said.

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While policy makers in the U.K. and overseas say the global economy is recovering from last year's slump, they also say the recovering is tentative. Bank of England Governor Sir Edward George suggested yesterday the central bank will keep its benchmark interest rate at 4 percent, to help the economy expand. ``I don't think it's written in stone that we have this recovery,'' George said. Federal Reserve Chairman Alan Greenspan suggested this week the Fed may keep U.S. borrowing costs low for some time, as well. George previously said the Bank of England is unlikely to raise rates as fast as investors expect it to. The three-month Libor contract for June yields 4.33 percent, compared with the benchmark 4 percent. The December contract yields 5 percent. Some companies are seeing a recovery. Cookson Group Plc, a maker of circuit-board components for companies such as Nokia Oyj, said this week the slowdown that pushed it to a loss in 2001 may be ``bottoming out.''