BETTER-than-expected news from manufacturers fuelled recovery hopes today after a survey showed output at its highest level for almost two years last month.

The Chartered Institute of Purchasing & Supply’s (CIPS) headline activity index - where a score over 50 registers growth - reached 53.7 in October, its highest level since November 2007.

The jump from an upwardly-revised September score of 49.9 is the third biggest monthly rise in the survey’s history.

CIPS chief executive David Noble said: "It appears that the manufacturing sector has turned a corner and is starting to pull itself out of recession."