UK manufacturing picked up last month, figures show, with analysts saying that an interest rate cut later this week is now less likely.
The PMI data suggested the slowdown seen in October was short-lived.
The figures came as the Engineering Employers Federation (EEF) business group said that UK manufacturers were upbeat about 2008.
The credit crunch had failed to have a major impact on either investment or costs, the EEF said.
'Greater resilience'
The Chartered Institute of Purchasing and Supply/NTC said that its purchasing managers' index index rose to 54.4 in November, from October's downwardly revised 52.8.
"The UK manufacturing sector showed resilience in November, regaining much of the momentum lost in the previous month," said NTC economist Rob Dobson.
"This suggests that part of the marked slowdown may have been solely the result of a hit to business confidence following the onset of the credit crunch."
Meanwhile a report by the EEF said engineering would expand 1.3% in 2007 and 1% in 2008, with manufacturing growing 0.8% this year and next.
EEF chief economist Steve Radley said growth should continue through to 2009.
"Despite rising oil prices, a falling dollar and a more uncertain economic outlook, manufacturers recorded another quarter of healthy growth and are looking to the future with a degree of confidence," Mr Radley said.
"Investment intentions also remain strong, reflecting their continuing commitment to drive up productivity.
"Though the economic outlook remains unclear, manufacturers' greater resilience should mean that growth continues into 2008."
He said only a few firms said they had seen a big increase in the cost of loans from banks or other financial providers.
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