The UK manufacturing sector’s recovery is continuing at a pace, with faster growth in domestic orders and output, a report has said.

The quarterly CBI Industrial Trends Survey said firms saw robust order growth in the three months to July, with total order book growth up on the last quarter’s 19-year high.

It added domestic orders rose at their fastest pace since 1988, with new job numbers rising strongly.

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The survey, which looked at 481 companies, also said firms are upbeat on the next quarter, with new orders expected to grow at their strongest since 1977.

Katja Hall, CBI deputy director-general, said the recovery was keeping a good pace, but warned of risks which could derail the improvement.

She said: “Industry is performing well as orders and hiring are on the up, and investment intentions for the year ahead are looking healthy across the board.

“However, it is not all plain sailing, and there are still risks to the recovery.

“These include increasing international political instability, and the rise in sterling, which could be weighing on exports.

“We need to continue to help manufacturers to export their products to high-growth markets across the globe, to give a healthy and sustainable boost to the UK’s recovery.”