Optimism among UK small manufacturers has climbed to its highest perch since 1988, according to business group the CBI.

That’s the year the CBI started compiling figures on SME manufacturer confidence.

A survey of 366 producers showed domestic orders rising quickly and export orders bouncing back from a fall in the previous quarter.

Meanwhile output jumped for the third consecutive quarter and output expectations among the survey firms were at their highest for nearly 20 years.

Katja Hall, CBI chief policy director, said: “It’s very encouraging to see record levels of optimism among smaller manufacturers, on the back of robust growth in domestic and export orders, and a leap in output levels.

“Hiring is also on the up, and is set to strengthen as we look ahead into 2014.”