Manufacturing production in the UK has risen for the first time in two years, according to data released by the Confederation of British Industry (CBI).

The business group's latest quarterly Industrial Trends Survey revealed a stronger than expected rise in output in the three months to January.

Of the 461 manufacturers surveyed, 31% said output rose during the three-month period, while 20% experienced a decline. The resulting balance of +11% is the strongest figure since January 2007.

Export orders rose for the first time since January 2008, boosted by the relative weakness of Sterling and improving global demand. 30% of firms said exports grew during the quarter, while 24% reported a fall, giving a balance of +6%.

Businesses expect exports to grow more strongly in the next quarter and firms are the most optimistic about export prospects for the coming year since July 1995.

"After nearly two full years of falling output, manufacturers are seeing a return to modest growth, thanks in part to improved overseas demand and much slower stock reductions," said Ian McCafferty, the CBI's chief economic adviser.