Manufacturing sector shows confidence

THE UK economy was given a welcome boost yesterday after a survey reported a more confident manufacturing sector and stronger order books.

A balance of minus 2 per cent of companies said order books were higher than normal this month, the CBI survey revealed, an improvement on April's balance of minus 11 per cent.

With demand steadily improving, a balance of 20 per cent of firms expect a rise in output in the next three months, well above the long-term average, the business group added.

The manufacturing sector has wavered in recent weeks, fuelling fears that a strong run for the industry was losing momentum.

Ian McCafferty, CBI chief economic adviser, said: "Our survey shows manufacturers are still seeing solid growth in activity."