Hard-hit manufacturers are 'turning the corner' with rising output expected over the next three months, the CBI business group said today.

Its industrial trends survey for October showed a four per cent balance of firms expected higher volumes in the coming quarter - the first positive result since June last year and the best since March 2008 before recession struck.

Chief economic adviser Ian McCafferty said: "Having endured a brutal recession, manufacturers appear to be turning the corner, with optimism up and mild growth in output and demand expected over the next three months."

The CBI warned that the recovery from the downturn will be 'protracted and weak’ despite the optimistic signs and some support for exports from a weaker pound. Over the month, a 46 per cent balance of firms reported lower export orders - the same result as September - although confidence over export prospects for the year ahead among manufacturers is at its highest since June 1995. Its quarterly figures showed that a 10 per cent balance are more hopeful about the overall business situation than they were three months ago - the first improvement in business sentiment since April 2007. Unemployment among manufacturers is expected to continue to rise over the next three months, but at a reduced rate to earlier quarters, the CBI added. IHS Global Insight economist Howard Archer said the survey painted a 'generally more upbeat picture' for manufacturers, after official figures showed a surprise decline in August. "Nevertheless, serious doubts remain about the strength of demand for manufactured goods over the medium term, particularly once stimulative measures start being withdrawn," he warned.