"Robust demand at both home and overseas is reflected in strong order books, and output is picking up the pace", said Rain Newton-Smith, chief economist at the CBI. Exports were also strong equalling the level seen in March.
The CBI's poll of 432 manufacturers showed bosses expected output to grow "at the same robust pace in the coming quarter", with 37pc predicting growth, compared with 10pc expecting a decline.
Driven by faster growth in export orders, the balance of manufacturing companies that reporting their order books were above normal levels was +9% greater than those reporting levels below normal, which was up from a balance of +4% in April and the highest in over two years.
"The upbeat survey supports our view that the manufacturing sector should perform well this year and help to offset some of the slowdown in consumer spending growth".
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However, fuelling concerns about the squeeze on British consumers from rising inflation, a balance of nearly a quarter of the 432 manufacturers surveyed expected a sharp rise in average selling prices due to strong pricing pressures from inputs. The EEF, which represents manufacturing firms, said last week that orders were improving as United Kingdom exporters enjoyed an improved competitive position "vis-a-vis the pound depreciation" and global growth picked up strongly from a dip past year.
But there is anecdotal evidence that while manufacturers have boosted production, they remain reluctant to increase investment and expand capacity.
They are also concerned that sterling could rise, wiping out the benefit for exporters, should the Brexit talks proceed smoothly and the United Kingdom strike a beneficial trade deal with Brussels.
The CBI pointed out that although orders and output were up at United Kingdom factories, manufacturers were facing higher costs for imported raw materials.
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However, the industry continued to grapple with pressure on prices, as the Brexit-hit pound pushes up the cost of imported materials.
The figures are likely to offer some reassurance that the big fall in the pound after last year's Brexit vote, twinned with a strong global economy, will boost manufacturers at a time when consumers are under pressure from rising inflation.
"On the other side of the coin though, we have mounting cost pressures and expectations for factory-gate price rises are running high. Sustained investment in innovation and education will be vital to shore up the success of British industry".
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