Manufacturers' order books remain healthy and firms' expectations for output growth have improved, according to the CBI's monthly Industrial Trends survey.
The snapshot of the manufacturing sector shows that while 23 per cent of companies reported their order books to be below normal, 29 per cent reported above normal levels.
The balance of plus 6 per cent is lower than last month's 12 year high of plus 9 per cent but remains higher than average for the first half of 2007 (plus 3 per cent).
The CBI's chief economic adviser, Ian McCafferty, said: 'Demand for goods remains strong with manufacturers saying their order books are bulging and exports holding up well too, despite the continuing strength of the pound. Expectations for the coming three months suggest this healthy situation will continue.'