The latest survey by the Confederation of British Industry (CBI) revealed on Tuesday the UK manufacturers' order books decreased slightly in July.

According to the report, the CBI's monthly factory order book balance declined to +17 in July from +19 in the previous month. Economists had forecast the reading to come in at +16.

The CBI also reported that output volumes in the three months to July grew at the joint-fastest pace on record (+37, record since 1995). It was also expected that output growth will accelerate further next quarter (+44), marking the strongest expectations for growth on record.

In other survey results, average costs growth in the quarter to July accelerated to its fastest since April 1980 (+73). Costs growth was seen to ease next quarter, despite remaining quick by historical standards (+56). Numbers employed in the quarter to July (+24) grew at their quickest rate since October 1973. Headcounts were forecast to increase at a slightly faster pace next quarter (+28).

Business optimism growth remained strong by historical standards, despite slowing from last quarter (+27 from +38 in April).