Pound rise threatens demand for goods
Demand for British-made goods rose in June but this could be threatened by the rise in the pound, the CBI has warned.
The business group's Industrial Trends survey showed manufacturing orders were at their strongest since December's 18-year high, with the food and drink sector "particularly robust".
Export order books rose to a level well above the long-run average, driven by strong results from the mechanical engineering, electronics and motor vehicle industries, the CBI said.
Deputy director-general Katja Hall said: "Demand for British-made goods remains buoyant and that's helped drive this quarter's further rise in output.
"Growth is broad-based, with the recovery spreading its roots, and firms have high hopes for the coming quarter. However, the recent rise in sterling could impact on the resilient export orders we've seen lately.
"As a result, now is the right time to capitalise on boosting manufacturing further by taking action to strengthen the UK's supply chains across industry.
"This will help unlock further growth and increase exports."
The poll of 514 firms found output volumes rising at a solid pace.