Managers in the British manufacturing sector reported an increase in exports in the sector for December over the previous two months in figures released Tuesday, the first economic indicator of 2012.

The British manufacturing sector showed signs of stabilization at the end of 2011. Production was broadly unchanged in December, following back-to-back contractions, and the rate of decline in new orders slowed as the trend in new exports strengthened, the Markit/Cips report on manufacturing PMI for December revealed.

The PMI index rose to 49.6 from November's 47.7, stabilizing production after two months of contraction.

The report indicated that growth in the figures was coming from exports, "with levels of total new work falling for the sixth month in a row, companies registering an increase in output generally linked it to higher foreign demand and efforts to clear backlogs of work."

New export orders rose for the first time in five months, the report said, reflecting increased levels of new work from clients in Germany, East Europe and China.

"Looking ahead, manufacturers are currently relying heavily on backlogs of work to prop up production. This is only a temporary fix, and the trend in overall order books needs to improve if the sector is to avoid a protracted period of lackluster performance," said Rob Dobson, the report's author and senior economist at Markit.

The slightly optimistic figures are a better start than many had expected to what is forecast to be a tough year ahead for the British economy and industries.

The Organization for Economic Cooperation and Development (OECD) forecast at the end of 2011 that Britain would go into recession in the first half of 2012.