UNITED Kingdom manufacturers are optimistic about the recovery of the British economy, which is still mired in recession, according to a survey released yesterday.

October's Purchasing Managers Index for the manufacturing sector stood at 53.7, marking the first time since November 2007 there were more respondents seeing an improvement in business than a decline. Any figure above 50.0 indicates a net increase in activity.

New orders hit a 69-month peak, though the Chartered Institute of Purchasing & Supply said that was measured against weak comparatives.

"One of the most positive developments noted by purchasing managers is that their clients are starting to restock inventories, which is encouraging them to restart production lines," said David Noble, the institute's CEO.

He said this suggested growth may be sustainable.

The latest figures must be treated cautiously, said Rob Dobson, senior economist at Markit Economics, which gathered the survey data.

"Job losses are still running at a fast rate and cost pressures are starting to re-emerge," Dobson said.

Britain's economy shrank 0.4 percent in the third quarter, according to official data.