Business confidence has taken a turn for the better in Northern Ireland despite falling order books, particularly export orders, according to the latest Confederation of British Industry (CBI) survey of regional trends.

The main factors behind the upturn in confidence are the belief that output will increase in coming months and that productivity gains will be made through falling unit costs. Employment levels are expected to increase.

"Manufacturers in Northern Ireland reported a sharp rise in general business confidence since January," the CBI noted. "Export optimism, on the other hand, declined. "Total new orders fell quickly in recent months and are expected to go on falling. Export orders also fell, beyond manufacturers' expectations."

Although total output fell in the January/April period, manufacturers expect output to rise during the next four months.

Higher workloads are expected to lead to increased employment, making Northern Ireland the only UK region with positive employment prospects among manufacturing firms.