GREATER demand from America, China and the Middle-East helped the manufacturing sector end 2016 on a 30-month high.

Latest figures show overseas orders, bolstered by the weaker pound, propelled the industry in December, with domestic clamour helping maintain the momentum.

According to a survey, released by IHS Markit and the Chartered Institute of Procurement and Supply, export business rose for a seventh successive month, helping employment increase for a fifth consecutive month as manufacturers felt the benefits of inflation easing.

It added demands across the intermediate and investment goods industries had driven the improvement, with the consumer goods sub-sector suffering a slight fall against previous gains.

The industry gave a reading of 56.1 for December, which was the highest figure for 30 months and well above November’s 53.6.

Any number above 50 separates growth from contraction.

David Noble, group chief executive at the Chartered Institute of Procurement and Supply, said firms had benefited from a “fizz” in orders, which leaves them well placed to brush off some reservations caused by the EU referendum.

He said: “Manufacturers enjoyed the stronger economic environment and raised production as a robust pace.

“The stimulus came from new order wins in both domestic and overseas markets (and) the rates of growth remained marked, while new export orders were boosted by the sustained weakness of the pound.

“Some respondents commented on an increase in orders from India, China, the US and the EU.

“This fizz in new orders signals good news for UK manufacturers, which has previously been hit by uncertainties following the referendum.

“The sector looks set to reach a more robust growth path at the start of 2017.”

Rob Dobson, senior economist at IHS Markit, which helps compile the survey, also revealed the sector’s higher costs were passed on at the factory gate, with selling prices increasing for the eight straight month.

He reiterated the industry was on a stronger footing, highlighting the importance of expansion in the investment and intermediate goods sectors.

Mr Dobson added: “The survey is signalling a quarterly pace of growth approaching 1.5 per cent – a surprisingly robust pace given the lacklustre start to the year.

“A plus point was that the expansion was led by the investment and intermediate goods sector, suggesting capital spending and corporate demand took the reins from the consumer in driving industrial growth.”