Manufacturers optimistic as order books show signs of recovery

The survey of more than 350 manufacturers shows that orders and output continued to grow steadily in the three months to October. Total new orders grew for the second consecutive quarter and output rose for the third consecutive quarter. Total new orders grew at the fastest pace since April 2012, with growth in the volume of domestic orders at its highest rate since April 2011. Stephen Gifford, pictured, CBI director of economics, said: "The manufacturing sector has increasing confidence in the UK's recovery with optimism about the general business situation improving to the greatest extent since April 2010. "New orders and output are continuing to grow steadily and expectations for the next three months are promising." Gifford warned, however, that there were only limited signs of rebalancing towards exports or investment, with marginal growth in export orders and a number of firms scaling back plans for capital expenditure on plant and machinery.