UK manufacturers expect to increase production in the next three months, despite export worries, a report has said.

The CBI Industrial Trends Survey said firms’ order books remain above average, with output staying strong.

However, the analysis, which used data from 468 manufacturers, revealed companies’ exports successes were still suffering from the weaker Eurozone.

Rain Newton-Smith, CBI director of economics, said: “Manufacturers lost some of their steam from last month, but they continue to move steadily along a decent growth track.

“But sluggish export performance seems to be a headache that won’t go away, with a still subdued Eurozone and headwinds from a stronger pound.

“With emerging markets facing a tough time, and uncertainty continuing to hang over the Eurozone, firms are having to work even harder for opportunities to sell their products and services around the world.”

According to the report, 32 per cent of firms said the volume of output over the past three months was up, while 22 per cent said it was down.

Referring to exports, ten per cent of businesses said export order books were above normal, with 35 per cent saying said they were below normal.