According to a latest survey, the total order books of UK manufacturers has increased to its highest level since 1995 as the firms recorded strong growth in output volumes.

The survey also showed that the manufacturers expected a further increase in output volumes in the coming three months. The survey including 350 manufacturers was conducted by the Confederation of British Industry between October 24 and November 13 and published yesterday. The survey showed that electrical engineering was the only sector that did not record growth in output volumes during the previous three months.

The survey showed that a net 29 per cent of the manufacturers, which is calculated after subtracting the number of manufacturers recording a fall in output volumes during the previous three months from those recording rise, said that their outputs increased during the period. A net 11 per cent of manufacturers said that their order books were above normal, which is the highest reading since 1995. Only a net 1 per cent said that their export order book was above normal.

Stephen Gifford, CBI director of economics, said, "This new evidence shows encouraging signs of a broadening and deepening recovery in the manufacturing sector. Manufacturers finally seem to be feeling the benefit of growing confidence and spending within the UK and globally. But challenges remain. UK exporters need government support to break into high-growth export markets to reduce their vulnerability to any further eurozone flare-ups."