Small manufacturing businesses in the UK have recorded a fourth consecutive quarter of strong growth, figures from the CBI revealed today.

The CBI’s SME Trends Survey shows that orders from customers in the UK increased steeply as did resulting output. Both are expected to rise quickly in the next three months.

Meanwhile, the number of people employed in the sector rose at the fastest rate since CBI records began in 1988. Not surprisingly, optimism within small manufacturers was also up, said the business lobby.

But, in a negative finding from the figures, export orders were “broadly flat” in the three months to July. Expectations had been for a big increase during the three-month period.

Katja Hall, CBI deputy director-general, said: “Smaller manufacturers are settling into a regular growth pattern, with their order books and output growing for the fourth consecutive quarter.

“Firms remain upbeat about their business situation and they are hiring at their fastest rate since 1988. But export orders have underperformed this quarter, which may in part be because of the strength of Sterling.”

In other findings, small manufacturers said they would increase investment in plant and machinery in the next 12 months, but expenditure on buildings will stay broadly the same.