Business confidence is surging across European manufacturing, with the UK and Italy taking the lead, according to reports today that also highlight the turnround in countries such as Brazil and China.

Optimism about production trends is back at levels seen before the intensification of the global slowdown late last year, and points to a clear growth in manufacturing activity by the middle of 2010, the latest KPMG business outlook survey shows. The results are the latest evidence of a synchronised global rebound, possibly at a faster pace than expected until recently.

The European Central Bank last week turned more optimistic about eurozone and global prospects, although the Bank of England was more pessimistic, warning that the UK recession appeared to have been “deeper than previously thought”.