Britain’s manufacturing output growth is expected to remain steady over the next three months, despite slower growth in the quarter to July. 

According to the CBI’s survey of 505 firms, export order books reached a two-year high, thanks in part to the pound’s devaluation since the end of 2015, which may be fuelling stronger overseas demand. 

The bulk of growth was enjoyed by chemical manufacturers, accounting for just over half of export order increase. Less than a third of the 17 manufacturing sub-sectors said that export orders has dipped below normal levels. 

Price expectations for September to November also rose to their highest since February 2015. The CBI believed this could have been due to the increased cost of imported raw materials following sterling’s depreciation.

Anna Leach, CBI’s head of economic analysis and surveys, said: “It’s good to see manufacturing output growth coming in stronger than expected, and some signs that the fall in sterling is helping to bolster export orders. But the pound’s weakness is a double-edged sword, as it benefits exporters but also pushes up costs and prices.”

She added that companies will want ambitious decisions in the Autumn Statement to secure the UK’s economic future in the face of impending changes to trade, regulation and access to skills.