UK manufacturing in good health

The UK manufacturing sector is in rude health, thanks in large part to strong demand from overseas customers, an industry survey suggests.

The sector will outperform the rest of the economy next year, according to the Engineering Employers Federation.

However, the group says further expansion will depend in part on continued recovery in overseas markets.

Meanwhile, business group CBI has called manufacturing the "unsung hero" of the UK economy.

After polling more than 500 leading firms, the Engineering Employers Federation (EEF) said manufacturing firms were "powering ahead" by recruiting new staff and investing in their businesses.

"Manufacturers are ending the year on a high and should enter 2011 on a strong footing," said the group's chief economist Lee Hopley.