UK Manufacturing Sector Reports its Growth to hit a 15-Year High

A survey this morning, suggested that UK manufacturing activity in Britain's grew at its fastest pace in 15 years last month as factories reported strong rise in demand from home and abroad.

The survey comes as the Bank of England's monetary policy committee prepares to meet on Wednesday and Thursday this week to proceed with the critical decision on whether to suspend its £200bn programme of quantitative easing (QE).

The Chartered Institute of Purchasing & Supply's purchasing managers' index registered a rise to 56.7 last month, up from a revised 54.6 in December surpassing city analysts' expectations of 54.0 and was the highest reading since before Labour came to power.

The survey follows official data last week that revealed that Britain only just managed to get rid of the troubling waters of recession with a mere 0.1% quarterly growth rate at the end of 2009. However, the PMI's compilers speculated 2010 would witness growth gaining momentum from there and highlighted that manufacturing jobs were on the up for the first time in almost two years.

A senior economist at Markit claims, "The main driver of growth was a surge in new export orders, as improving global market conditions and the ongoing weakness of sterling led to the sharpest rise in foreign demand recorded in at least 14 years."