A survey from the Confederation of British Industry (CBI) says total order books have strengthened to a 29-year high in June 2017, though output growth slowed.
A weaker pound and a strengthening global economy has increased demand for goods Made in Britain.
The survey results give some prospect that manufacturing could support the economy as inflation pushes down consumer spending, and trade agreements with Europe and other countries are yet to be agreed.
464 manufacturing managers said total order books climbed to the highest level since August 1988. This was underpinned by a broad improvement in food, drink and tobacco and chemicals sectors. Export orders also improved to a 22-year high, hitting similar peaks to those seen in 2011 and 2013.
But the CBI warned a rising price level was pushing manufacturers to increase selling prices, which could act as a disincentive to future buyers.
Rain Newton-Smith, CBI Chief Economist, said: “Britain’s manufacturers are continuing to see demand for ‘Made in Britain’ goods rise with the temperature. Total and export order books are at highs not seen for decades, and output growth remains robust.
“Nevertheless, with cost pressures remaining elevated it’s no surprise to see that manufacturers continue to have high expectations for the prices they plan to charge.
“To build the right future for Britain’s economy, manufacturers and workers, the Government must put the economy first as it negotiates the country’s departure from the EU. This approach will deliver a deal that supports growth and raises living standards across the UK.”