CBI reports rising goods demand

However, the business group warned that cost pressures have intensified and access to credit remains a concern for some smaller firms.

Of the 402 manufacturing firms surveyed for the CBI’s quarterly SME Trends Survey, 36 per cent reported a rise in the volume of total orders in the three months to April and 26 per cent a fall. The resulting balance - the difference between the percentage of manufacturers reporting an increase and those reporting a decrease - of +10 per cent is the first significant growth since January 2008.

A rise in export orders, thanks to the relative weakness of Sterling, accounted for much of the improvement. A third of firms said export order volumes increased and 15 per cent said they declined, giving a balance of +18 per cent, which marks the strongest balance since July 1995 of +21 per cent.

The volume of domestic orders is also said to be stabilising, with 31 per cent of companies reporting a rise and 28 per cent a fall. Manufacturing production remained steady during the quarter with a balance of +3 per cent seeing output grow.