A survey published earlier this month by EEF and BDO claims that British manufacturing is continuing to grow despite the uncertain economic outlook.

Output and orders are increasing with all sectors reporting recent positive activity. Exports are believed to be the main drivers behind the growth.

However increasing uncertainty about the financial situation is still causing caution.

Commenting, EEF chief economist Lee Hopley, said: ‘Manufacturers have bucked other recent negative indicators, holding out hope that the recovery has not yet run out of steam.

‘Across much of the sector, companies are still busy and orders are holding up, particularly from overseas markets. However, conditions have moved on from the broad-based recovery seen over the past 18 months to a more mixed picture, especially around the short-term outlook.

‘The growing challenges in the global economic environment, in particular, are casting a shadow over expectations and seem to be giving some companies pause for thought when it comes to investing and recruiting. But there is cautious optimism that growth will continue through the rest of the year.’