MANUFACTURING demand in the South East has continued to improve with order books at their strongest in 21 months, according to the CBI’s latest monthly industrial trends survey.

The balance - the difference between the percentage of manufacturers reporting an increase and those reporting a decrease - of companies reporting 'below normal' orders was minus five per cent, an improvement on August’s minus eight per cent and the strongest since December 2004.

CBI South East regional director Malcolm Hyde: said: "This year’s trend of increasing demand for British-made goods is continuing, helped by the strength of the world economy.

"Looking further forward, though, there is uncertainty as to how long the boost to UK manufacturing from exports can continue, with overseas demand expected to cool next year.

"Cost pressures from inputs such as energy have recently eased a little but profit margins remain under strain. Overall, the sector is doing better than it has for some time, but concern remains over how long this can go on."