The British manufacturing sector received a boost today when figures showed orders at their highest level for more than three years.
Both domestic and export orders improved sharply last month despite the growing strength of sterling, according to employers' group the Confederation of British Industry (CBI).
The survey also showed export orders were at their highest level in more than seven years - strengthening the UK's manufacturing recovery.
According to the CBI, the strength of sterling had not yet had a noticeable impact on export orders, although domestic prices were coming under pressure as competition from cheaper imports increased.
CBI chief economic adviser Mr Ian McCafferty said the figures showed the manufacturing recovery was gaining strength. But he added: "The value of sterling is yet to have an impact on export orders, though manufacturers will be concerned if the pound strengthens further.
"Competition from cheaper imports has, however, renewed the downward pressure of domestic output prices."
The CBI's industrial trends survey, which questioned 803 manufacturers, showed that 21 per cent of firms thought total orders were above normal, while 29 per cent thought they were below.