British manufacturing orders contracted in June at a reduced pace compared with a month earlier, despite a sharp drop in export orders, a survey from the Confederation of British Industry showed on Monday.

Its monthly gauge of new manufacturing orders rose in June to -18 from -33 in May, a three-month high, while expectations for output rose to their highest level since October.

Exporters, however, reported a tougher month, with the CBI's indicator of export orders falling to its lowest since February 2021.

"It's encouraging to see that manufacturers remain confident the economy is heading in the right direction and our June survey suggests that the recovery should broaden out over the summer," said Ben Jones, CBI lead economist.

"One note of caution is that order books remain soft. The sharp deterioration in export order books is particularly striking and is something to keep an eye on in the coming months."

The survey of 248 manufacturing companies took place between May 24 and June 13.

(Reporting by Andy Bruce; editing by David Milliken)