Manufacturing levels in the UK are set to rise slightly as demand for British goods overseas continues to pick up, according to the latest estimates.
The Confederation of British Industry (CBI) expects to see production edge higher, with firms the most positive about output for nearly two years.
According to the organisation's monthly Industrial Trends Survey, a quarter of manufacturers are anticipating an increase in output over the next three months.
Demand from overseas has been boosted by the continued weakness of sterling and an upturn in economic activity, increasing exports order books for many UK firms.
Ian McCafferty, CBI chief economic adviser, said: "Manufacturing production is slowly recovering as demand for UK-made goods overseas is improving.
"Stock levels are now much closer to requirements, suggesting the period of aggressive de-stocking is now over."
Despite the improvement in export levels, Mr McCafferty said overall demand remains "feeble", meaning growth prospects are likely to remain subdued.
Last week, the Bank of England's latest Trends in Lending report showed that lending to British businesses fell at its fastest ever pace in December.
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