Recovery in the manufacturing sector looks set to continue, according to the Confederation of British Industry (CBI).

Of the 451 manufacturers that responded to the lobbying group’s Quarterly Industrial Trends Survey, 36 per cent say they have seen an increase in output in the last three months, while 15 per cent say it has fallen, giving a rounded balance of +20 per cent.

The success is driven by strong growth in both domestic (+15 per cent) and export (+24 per cent) orders, with the rates of growth at their fastest since April 1995 (+17 per cent and +34 per cent respectively).

Demand and production are expected to continue rising over the next three months. Companies predict that output growth will be sustained at a similar pace to this quarter (+22 per cent).

At the same time, manufacturers expect domestic and export orders to continue to increase over the next quarter (+11 per cent for both), at rates well above their long-run averages.

CBI director-general John Cridland says, ‘The manufacturing recovery remains firmly on track.  Strong demand at home and abroad and rapid restocking over the past quarter have led to another solid rise in production, with growth expected to continue over the next quarter.’