UK manufacturing hits four-year high

The UK's struggling manufacturing sector expanded at its fastest pace in almost four years in December, giving fresh hope of recovery during 2004.

The purchasing manager index of activity in the manufacturing sector rose to 56.0 in December from a 54.5 figure in November, the Chartered Institute of Purchasing and Supply (CIPS) said today.

The recent weakness of the dollar against the pound had raised concerns that exporters may struggle to sell to the US markets but the survey did not back up those fears.

The December figure was higher than the consensus forecast of 54.7 and was the highest reading since December 1999.Any reading above 50 indicates growth.

Manufacturing prices recorded a nine-month rise to 56.7 in December from 55.1 the previous month, while the employment index rose to 51.6, its highest level since June 1997 from 49.8 in November.