CONFIDENCE in the manufacturing sector recovery has been dented by reports that orders fell this month.

Companies reported demand for products was down on those placed last month, according to the Monthly Industrial Trends survey from the Confederation of British Industry (CBI).

While 22 per cent of manufacturers said order books were above normal, 28 per cent said they were below, giving a negative balance of six per cent - against a positive balance of one per cent last month.

The CBI said this month's result was not sufficiently weak to indicate a marked change in the improving trend reported during the past eight months.

But economists said it could be enough to persuade the Bank of England's monetary policy committee to give the economy some respite from recent interest rate rises.

Ian McCafferty, CBI chief economic advisor, said the underlying trend of slow, steady improvement in orders and output was continuing.

"In general, manufacturers are benefiting from the improving conditions globally, but many continue to struggle, with both the level of sterling and the impact of rising interest rates on their costs."