Manufacturing activity in Britain expanded at its fastest pace in four months in November as factories ramped up production to meet rising demand.
The latest figures call into question the growing assumption that interest rates have peaked.
The Chartered Institute of Purchasing and Supply/Reuters purchasing managers index for the manufacturing sector, which accounts for around 17 percent of the country's economy, rose to 55.0 from an upwardly revised 53.5 in October.
That was its strongest reading since July and its second straight monthly gain, confounding consensus forecasts of a dip to 52.5. It was also the 17th consecutive month above the 50 level that divides expansion from contraction.
The pound extended gains to rise above $1.92 for the first time in 12 years and interest rate futures fell sharply as dealers reckoned that the monetary tightening cycle may still have some way to go.
Many analysts had concluded the Bank of England which had raised borrowing costs five times in the past year would now probably leave rates on hold for the foreseeable future after figures showed the economy slowed sharply in the third quarter.