The survey of 471 firms found that total orders reached a two-year high, with the strengthening in demand led by the mechanical engineering and metal products sectors. Export orders remained stable, and above the long-run average.

Output growth remained robust in the three months to February and is expected to increase at a faster pace over the coming quarter, with expectations at their highest since September 2013.

Firms expect prices to rise strongly over the next three months, with expectations at their firmest since April 2011, as Sterling's depreciation continues to increase the cost of raw materials.