UK manufacturers are increasingly optimistic for the year ahead, boosted by a strong growth in domestic sales and export opportunities.

According to the findings of the latest quarterly trends survey from the CBI, the value of domestic orders rose at the fastest pace since July 2014 in the three months to January 2017. Export orders also grew, in the same period albeit at a slightly lesser rate than expected.

The CBI says demand is expected to grow strongly over the next three months, driven by both domestic and export orders, while production is also expected to advance briskly – expectations for output growth are also the highest since July 2014.

Sterling’s depreciation continues to impact prices as unit costs rose at their highest pace in over five years, amid expectations that this will intensify over the next quarter. On the flip side, manufacturers continue to see the competitive benefits arising from sterling’s weakness, reporting a further strong rise in co