Britain's manufacturers are continuing to report buoyant trading conditions on the back of rising demand in overseas markets, according to a major survey published today by EEF.

The third quarter EEF/BDO 'Manufacturing Outlook' report reveals that recovery, which began at the end of last year, has been sustained with output and orders balances reaching record levels for the second quarter in succession.

The Engineering Employers Federation (EEF) predicted manufacturing output would increase by 3.7% this year and by 3.2% in 2011.

It added firms were creating jobs - though these were mainly going to temporary or agency staff.

"Manufacturers have continued to reap the rewards of growth in overseas markets with the upswing being felt across all sectors and regions," said EEF chief economist, Lee Hopley.

"However, we have to maintain perspective that the recovery is coming from a very low base and the risks to the economy in the medium term haven't gone away."