UK manufacturing was celebrating another continuous month of growth. The Chartered institute of Purchasing & Supply activity index jumped to 58.2 in December, an increase on November’s 57.5.
A reading above 50 indicates growth, and this has been the way of things for UK manufacturing for the seventeen months.
Rob Dobson, senior economist at Markit and author of the report said: "The UK manufacturing sector saw a truly spectacular end to 2010.
"The latest data are consistent with manufacturing production rising at a quarterly rate close to 2%, which should generate a meaningful contribution from the sector to economic growth in the fourth quarter to offset likely weakness in other sectors."
It is not all bright sunshine however, in the manufacturing world. Input costs also rose to their highest point since the survey began, prompting fears of a Bank of England interest rate rise. Input costs were steepest in the textiles, clothing, food, drink, chemicals and other plastic sectors.
An analyst at HIS Global Insight said: "The only real blot in the survey was the record rise in input prices, which led to a pick up in output prices.
"This will not go down well at the Bank of England, and it will fuel speculation that the MPC could be pressurised into raising interest rates."
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