Britain's manufacturing sector started 2010 on a positive note after growing at the fastest pace in more than two years in December, respected data showed.

The manufacturing Purchasing Managers' Index (PMI) jumped to 54.1 last month from 51.8 in November, where anything above the 50 level indicates growth in the sector.

It marked the sixth successive month above 50 after a rise in output and new orders in December, and lifted the PMI to its highest level since November 2007. It also beat economists' expectations of a more modest rise to 52.

"Despite operating against one of the toughest economic backdrops ever witnessed, 2009 saw the UK manufacturing sector slowly regain its footing and end the year in comparatively strong shape," said David Noble, chief executive at the Chartered Institute of Purchasing & Supply which produces the survey with Markit.

New orders rose at the fastest pace since July 2007 and were focused on the domestic market, with only a slight rise in new export orders. Employment fell for the 20th consecutive month in the sector but at the slowest rate since May 2008. Larger companies shed jobs while some smaller companies said they hired new staff.

Link to read full Telegraph editorial: http://www.telegraph.co.uk/finance/econ o m i cs/6932179/UK-manufacturing-grew-at-fastest-pace-in-two-years.html