Factory orders in the UK in October grew at the fastest pace for six years and factory activity rose at its fastest pace in two years, according to data released by The Chartered Institute of Purchasing & Supply (CIPS).

The CIPS index grew to 53.7 from 49.9 in September, reaching its highest level since November 2007.

"The massive increase in output will cement expectations of a recovery in the fourth quarter," said Brian Hillard from Societe Generale.