New research shows growing demand for manufactured goods from UK companies; a day after chancellor George Osborne outlined a package of growth-boosting measures for the sector.

Data from business group the CBI showed order books improved slightly in the three months to March. The improvement was broad-based, it said, with better-than-average results in 14 of 17 sub-sectors covered.

Overall, export orders dropped slightly, but they were still above average in 11 of the 17 sub-sectors covered by the data.

Output growth also dropped to a five-month low, but it remained above trend.

In yesterday’s Budget Mr Osborne announced new grants for businesses taking on apprentices, an doubling of the annual business investment tax break, a £7 billion package to cut energy bills and more lending to exporters.

Anna Leach, CBI head of economic analysis, said: “The picture in the manufacturing sector remains positive. Overall, demand continues to rise and output growth is robust.

“Growth in exports is crucial to rebalancing the economy and ensuring a sustainable recovery… measures announced in the Budget should help businesses to break into new, faster growing markets and underpin an improvement in the UK’s export performance.”