In the three months to the end of June, demand in the manufacturing sector was stable, and output continued to expand at a solid pace, according to the latest monthly CBI Industrial Trends survey.

The survey of 482 manufacturers reported that total order books strengthened in the period, led by the food and drink sector, along with motor vehicles and transport; and with total export order books remaining unchanged, the survey suggests that the depreciation of sterling has yet to have a material impact on overseas demand.

Moreover, output growth continued to be brisk, with firms raising further their expectations for the next three months.

CBI chief economist Rain Newton-Smith said: “The recent fall in the pound appears to have done little for our exporters. It may be that the growing uncertainty in the run-up to the EU referendum, combined with global risks elsewhere, has offset some of the benefits of a weaker currency at this time; and while British manufacturers had a tricky start to the year, there are more positive signs as output and demand stabilise.”

The report says that 20% of businesses reported an increase in total orders and 23% a decrease, giving a rounded balance of -2%; also that 13% of businesses reported an increase in export orders and 27% a decrease, resulting in a balance of -14%. That said, 30% of businesses reported a rise in output volumes, and 19% a decrease, giving a balance of +11%.

Output is expected to increase over the next three months, with 35% of companies anticipating a rise and 13% expecting a decrease; average prices are expected to be broadly unchanged over the next quarter.