The gloom surrounding manufacturing may finally be lifting, figures from the Confederation of British Industry have shown.

The CBI's monthly survey of industrial trends showed manufacturers' expectations for output over the coming four months were at their most positive since March.

A total of 31 per cent of manufacturers polled expected the volume of their output would rise, against 19 per cent who thought it would fall.

The balance, plus 12, compared with a figure of plus one reported last month, but the figure concealed significant differences between sectors, said the CBI.

Larger firms with more than 500 employees were more positive in their expectations. Small and medium-sized firms thought output would remain stable over the coming four months.

Manufacturers in several sectors, particularly iron and steel, metal products, motor vehicles, paper, printing and publishing, expected output to fall markedly over the next four months.

Demand for manufactured goods had improved and total order books were now only slightly below normal, said the CBI.

A total of 27 per cent of firms said order books were above normal, while 29 per cent said they were below average. But export order books remained well down on normal even though they were less negative than in November.

A total of 15 per cent of firms said current orders were above normal, against 36 per cent that said they were below normal.

Sudhir Junankar, CBI associate director of economic analysis, said: "The less downbeat mood is perhaps a little surprising, with companies' expectations of moderate growth now similar to those seen in our surveys at the beginning of the year."