The UK's manufacturing sector exceeded expectation in the first half and growth in thus sector is expected to outstrip the rest of the economy, according to the EEF.

The industrial trade body has predicted that the sector will grow by 3.8% this year and 3.4% in 2011.

However, the EEF warned that spending cuts in the UK and abroad could hurt manufacturers in the long term

"Manufacturing has exceeded expectations so far this year with a broad-based recovery, supported by growth in world trade, a weaker pound and restocking. But, with looming spending cuts here and more uncertainty in key markets, the prospects for different sectors will diverge over the coming year," said EEF Chief Economist, Lee Hopley.