By Simone Meier Feb. 1 (Bloomberg) -- Expansion in Europe’s manufacturing industry accelerated more than estimated in January as reviving global demand prompted companies to step up output. An index of manufacturing in the 16-nation euro region increased to 52.4 from 51.6 in December, London-based Markit Economics said today. That’s above an initial estimate of 52 published on Jan. 21. The gauge is based on a survey of purchasing managers and a reading above 50 indicates expansion. European companies are increasing production as a global economic recovery spurs exports. China, the world’s third- largest economy, sustained its manufacturing expansion in January, data showed today. Germany’s Bayerische Motoren Werke AG, the world’s biggest maker of luxury cars, said on Jan. 29 that it expects full-year earnings to rise. “Manufacturers took the biggest hit and are now catching up,” said Christoph Weil, a senior economist at Commerzbank AG in Frankfurt. “The recovery will continue for another couple of months.” Manufacturing in the U.S., the world’s biggest economy, probably expanded in January for a sixth month, economists said before a report due later today from the Institute for Supply Management. The euro rose after the European manufacturing report, trading at $1.3906 at 9:56 a.m. in London, compared with $1.3863 on Jan. 29. The single currency has shed 2.9 percent against the dollar so far this year. A gauge of services in the euro-area economy fell to 52.3 last month from 53.6 in December and a composite index of the manufacturing and service industries declined to 53.6 from 54.2, according to Markit’s initial estimate released last month. Markit is scheduled to publish the final report for January on Feb. 3. To contact the reporter on this story: Simone Meier in Dublin at smeier@bloombert.net

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