According to the latest Quarterly Industrial Trends survey from the CBI, the volume of new orders continued to grow for British manufacturers in the last three months.

However, firms expect their export orders to ‘tail off’ over the next three months. Looking to the year ahead, manufacturers’ plans for investment in plant and machinery have strengthened, while their plans for spending on product and process innovation and training remain robust.

Rain Newton-Smith, the CBI’s director of economics, said: “British manufacturers are still heading along the right path. New orders are up, bolstered by domestic demand, and more people are getting work in factories across the UK. Exports have grown modestly, but there is a feeling that we will not see a repeat in the next quarter, especially with the euro-zone still ‘treading water’ and battling deflation.

“Falling oil prices should be positive for the UK economy overall, benefitting households and reducing costs for firms, although North Sea oil producers are being hit. With overall cost pressures contained as a result, it’s no surprise to see average domestic prices in the manufacturing sector falling at the fastest rate for five years.”