UK manufacturing activity grew at its fastest pace in more than two years in December, a survey has indicated.

The Chartered Institute of Purchasing & Supply's purchasing managers' index rose to 54.1 from 51.8 in November. A score above 50 indicates growth.

The survey also found an increase in the new orders index to 57.4, the highest level since July 2007.

The pace of job cuts in the sector was the weakest since May 2008 and mainly centred on larger companies.