The manufacturing sector posted its strongest monthly growth in nearly five years for March, the latest figures from the Office of National Statistics have revealed.
Compared with March 2009 at the height of the recession, industrial output is now 2.3% higher, the strongest annual growth since May 2004.
The ONS said the largest increases came in transport equipment, helped by a 52.3% year-on-year jump in motor vehicle manufacturing as the car industry benefited from the final month of its scrappage scheme.
Increased production of cutlery, tools and general hardware also boosted the metals sector, said the ONS.
Economists said manufacturers were benefiting from stronger export demand as the weaker pound boosted competitiveness overseas.
Howard Archer, chief UK economist at IHS Global Insight, said: "This is a really spectacular performance by the manufacturing sector, which is a real shot in the arm for the economy."
Ben Read, an economist at the Centre for Economics and Business Research, said the UK recovery appeared to be gaining momentum.
"However the continued problems in the eurozone, combined with the potential for prolonged political uncertainty here, could easily hold back the recovery in the second half of this year," he added.
© PE Publishing, 11 May 2010
