UK factory activity sees big rise

Opinion is divided about how encouraging the figures are

UK factory activity grew at its fastest pace in two years in October as orders rose at their fastest in almost six years, a survey has indicated.

The Chartered Institute of Purchasing & Supply (CIPS) report suggests the economy has made a strong start to the final quarter of this year.

The CIPS index grew to 53.7 from 49.9 in September, reaching its highest level since November 2007.

CIPS boss David Noble said it appeared manufacturing had "turned a corner".

'Fourth-quarter recovery'

Some analysts believe the figures are encouraging for wider growth in the economy.

"The massive increase in output will cement expectations of a recovery in the fourth quarter, " said Brian Hillard from Societe Generale.

However, many question how these figures compare with recent official GDP figures released by the Office for National Statistics.

"To jump by this much in a month just beggars belief," said Ross Walker from the Royal Bank of Scotland.

"The differential between surveys and official data is widening. Both can't be right. It will cast doubt on the weakness of third-quarter GDP numbers."