MANUFACTURING output growth slowed in the three months to July after a surprisingly strong upturn in the previous six months.

But the encouraging news is that the overall position continues to improve in most regions.

That's according to the latest regional trends survey published by the CBI and Experian.

Key indicators such as overall business and export optimism, capacity utilisation, new order volumes and output are generally improving steadily in many regions, notably the north west, Yorkshire and the Humber, Scotland, Wales, the east midlands and the south west, suggesting that the recovery in UK manufacturing is still on track.

Export optimism is buoyant in several regions, notably the north west and Scotland.

Doug Godden, CBI Head of Economic Analysis, said: "Following a strong six months, the UK's manufacturing recovery has moderated. But the regional pattern supports the view that this is not the beginning of a reversal in the sector's fortunes."