UK manufacturers have enjoyed the fastest growth in output volumes for more than 18 years in the past three months, with total order books in the best shape since 1995, a survey has shown.
And manufacturers predict a further sharp rise in output volumes in the coming three months.
The survey of nearly 350 manufacturers, conducted by the Confederation of British Industry between October 24 and November 13 and published yesterday, showed electrical engineering was the only manufacturing sub-sector not to have enjoyed growth in output volumes in the past three months.
Subtracting the proportion of manufacturers reporting a fall in output volumes in the past three months from that posting a rise, a net 29% enjoyed an increase. This was the highest balance since January 1995. A net 24% of manufacturers forecast a rise in output volumes in the next three months.
Meanwhile, a net 11% of manufacturers reported that their total order books were above normal, the strongest reading since March 1995.
Only a net 1% of manufacturers reported export order books were above normal. However, this is much better than the survey average of a net 20% reporting below-normal export order books.
Stephen Gifford, CBI director of economics, said: "This new evidence shows encouraging signs of a broadening and deepening recovery in the manufacturing sector. Manufacturers finally seem to be feeling the benefit of growing confidence and spending within the UK and globally.
"But challenges remain. UK exporters need government support to break into high-growth export markets to reduce their vulnerability to any further eurozone flare-ups."
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