Manufacturing growth at 16-year high

Manufacturing grew at its fastest pace for 16 years in December, an industry survey suggests.

The Chartered Institute of Purchasing & Supply (CIPS)'s activity index increased to 58.2 in the month, up from 57.5 in November - the 17th consecutive month the index has remained above the growth level of 50. While the upbeat figures will boost hopes the country's recovery is firmly on track, a sharp increase in firms' input costs will also increase pressure on the MPC to raise interest rates in an effort to combat inflation. The CIPS survey also says the manufacturing sector saw an increase in new jobs for the ninth consecutive month. Today's positive UK figures mirror a wider re...