Although the survey  of 404 firms (conducted between 23rd April and 15th May) found that output growth was broadly flat over the three months to May, the outlook is  much brighter for the next quarter, with output volumes expected to rise strongly – expectations have been elevated for three months. Twelve of the 16 sectors anticipate a pick-up, with food, drink & tobacco, and mechanical engineering sectors being the key contributors to growth.

Both total orders and export orders edged up a little and were broadly in line with their long-run averages. Meanwhile expected price inflation has fallen back to its lowest since last September.

Stephen Gifford, CBI director of economics, said: “Manufacturers remain optimistic that demand will pick up in the next three months, despite a recent history of disappointed expectations. This tallies with what we’re hearing from some businesses about confidence returning.

“With orders improving and the global economy heading for calmer waters, it looks like conditions for manufacturers may be on the up.”