A third of the 402 manufacturing firms surveyed experienced an increase in export order volumes, while 15% said they declined, giving a balance of +18%.

A rise in total order volumes was also experienced by the larger number of firms, with a balance of +10%, although domestic order growth remained muted, at just +2%.

Russel Griggs, chairman of the CBI's SME council, said: "The UK's smaller manufacturers are finally reaping the benefits of all their hard work as well as a relatively weak currency. Exports are growing steadily, domestic demand and production are stabilising, and firms are feeling more upbeat about their prospects.

"With demand expected to grow in the coming months, manufacturers are thinking about taking on extra staff over the next three months."

However, while the overall response painted a picture of an improved situation in terms of manufacturing orders, this was tempered by rising commodity and raw material prices.

Access to credit also remained a concern for some firms, with 12% citing credit constraints as a limiting factor on export orders and 7% claiming that lack of finance would act as a brake on output.

Griggs said: "Firms are experiencing a sharp rise in raw material costs, which is squeezing profit margins. But they do expect to recoup some of this by raising prices over the next quarter. It is also still a concern that access to credit remains a headache for some firms."