Hope grows for industry upturn

THE long-awaited recovery in Britain's manufacturing sector may finally be within reach, according to figures today that will increase speculation of a pre-Christmas interest rate rise.

The CBI said the mood among manufacturers was the most optimistic for 15 months, with strong signs that the year-long decline in orders across domestic and export markets may be ending.

Its survey of 836 firms showed 18% were more upbeat than three months ago, with 25% less optimistic. The resulting balance of minus seven is the lowest since July 2002.

Chief economic adviser Ian McCafferty said it was too early to gauge if firms had begun to turn the corner but added: 'This is an encouraging survey. The mood is lightening slightly.'

Today's figures come a month after revised estimates of GDP showed the economy was growing much quicker than expected.