A LEADING employers' organisation has declared the manufacturing downturn over.

The Confederation of British Industry yesterday published figures showing the clearest evidence yet of recovery in the sector.

The CBI's closely-watched quarterly industrial trends survey shows the strongest growth in total orders for more than seven years and the strongest growth in output for more than eight years.

In line with this more buoyant trading, confidence has increased for the first time in eighteen months and firms predict strong growth over the coming quarter.

But the CBI cautioned that the improvement is from an extremely low base following years of contraction in the troubled sector. Two thirds of firms continue to work below capacity, jobs are still being lost and competition continues to pressure prices.

A LEADING employers' organisation has declared the manufacturing downturn over.

The Confederation of British Industry yesterday published figures showing the clearest evidence yet of recovery in the sector.

The CBI's closely-watched quarterly industrial trends survey shows the strongest growth in total orders for more than seven years and the strongest growth in output for more than eight years.

In line with this more buoyant trading, confidence has increased for the first time in eighteen months and firms predict strong growth over the coming quarter.

But the CBI cautioned that the improvement is from an extremely low base following years of contraction in the troubled sector. Two thirds of firms continue to work below capacity, jobs are still being lost and competition continues to pressure prices.