THE UK'S manufacturing sector touched an 18-year high for the second consecutive month, a new report has revealed.

The CBI Industrial Trends Survey says order books and output growth reached levels not seen since 1995.

It says export orders also increased considerably, reaching their strongest level for 22 months, with the improvement driven by the chemical sector and motor vehicle and transport equipment industries.

The report added companies expect growth to continue in the next three months, although at a slower pace.

Stephen Gifford, CBI director of economics, said: “The manufacturing sector is showing further signs of momentum with nearly all sectors reporting growth for a second month.

“Total order books and output growth have maintained the strong performance from last month, while export orders have also shown an encouraging upturn in fortunes.

“While risks remain in the Eurozone and beyond, this survey provides further evidence the recovery is becoming more embedded.”