The UK's manufacturing sector could be on the brink of a major revival, according to a leading economist.

According to David Smith, The Sunday Times’ economics editor, there is strong evidence that the future is positive for UK manufacturing.

He points to Tata's decision to continue UK-based production of its recently acquired Jaguar and Land Rover brands as proof of the group's confidence in the UK’s manufacturing strengths.

Mr Smith also notes that three-fifths of UK-based manufacturers choose to locate their research and development departments in the UK, with productivity growth stronger than in any other sector.

"The good news is that 2007 was a strong year for the sector, one of the best for a long time, and the evidence so far this year is encouraging," he wrote last week.

On a wider scale, Confederation of British Industry (CBI) figures reveal that 26 per cent of UK manufacturing firms have above-normal levels of orders, with strong overseas orders key to the sector's success.

Business Secretary John Hutton also believes the sector is approaching a revival, with the expansion of the nuclear power industry creating up to 100,000 manufacturing jobs and an economic boost of £20 billion.