South Africa?s manufacturing confidence surged in the fourth quarter on higher sales and production, while overall business confidence for November edged higher, polls showed yesterday.

The manufacturing index compiled by the independent Bureau for Economic Research (BER) jumped to 75 points ? an 11-year high ? from 67 in the third quarter of 2006, pointing to strong underlying activity in Africa?s biggest economy.

Official statistics released last week showed South Africa?s economy expanded by 4.7 percent in the third quarter, down on the second quarter, but still robust despite higher interest rates.

The Central bank has hiked its rate by 150 basis points since June and is widely expected to add another half percentage point to increase it to 9.0 percent when its policy committee meets again tomorrow.

But consumer demand, and in particular credit extension, has so far shown little sign of abating, extending a spending boom that helped lift growth in 2005 to 5.1 percent -- its fastest rate in more than two decades.

The BER said ?exceptional? growth was recorded for domestic sales with demand for locally manufactured goods at its highest level since early 1995.

A net majority of 57 percent of respondents indicated an increase in sales volumes compared to 35 percent in the previous quarter.

Production volumes also grew strongly with a net majority of 49 percent having increased production, while more manufacturers hired new workers ? a net majority of 27 percent saying they added to their staff in the three-month period.

In a separate survey, the South African Chamber of Business confidence index climbed to an all-time high of 103.2 in November from 99.5 previously.