Optimism is growing among Britain's manufacturers but conditions in the sector remain difficult, according to the latest Industrial Trends Survey by the Confederation of British Industry (CBI).

The survey revealed 27% of companies expected production to fall during the coming quarter, while 25% said that they expected their output to rise. This produced a reading of -2%, up from August's reading of -5%.

"The survey for September showed significant improvement, thereby reinforcing belief that the manufacturing sector is set to make a positive contribution to GDP in the third quarter and help the economy return to growth," said Howard Archer, chief UK economist at consultancy IHS Global Insight.

The data also revealed that 8% of companies described the volume of their total order books as above normal, while 56% stated they were below normal. This results in a balance of -48%, an improvement on the -54% reading for August.