British manufacturers are continuing to enjoy a surge in growth on the back of exports.

There is confidence that manufacturing will enjoy further expansion in the second half of the year, according to EEF, the manufacturers' organisation and accountancy and business advisory firm BDO LLP.

While the export performance does have a currency aspect to it, the survey showed that manufacturers' views of demand prospects in exports markets have become steadily more positive over the past year.

Demand in European markets looks especially buoyant with over three-fifths of companies (61per cent)) reporting an upturn.

The survey also showed that, in contrast to recent years, positive output balances were reported across all sectors. However, those in the capital goods sector are performing especially well as global manufacturing intentions have increased.

A good pipeline of orders across the industry is pushing up demand for new employees and recruitment intentions soared to the highest level in three years, whilst investment intentions were in positive territory for the third quarter in a row.

EEF warned, however, that the current sweet spot for the sector cannot be guaranteed given the uncertainty ahead, in particular the likely continued squeeze on household incomes and the possibility of no deal on Brexit which could damage trade.

Commenting on the survey, EEF chief economist, Ms Lee Hopley, said: "Our survey marks another quarter of positive news about growth prospects for UK manufacturers. Industry is reporting that output and orders have continued to head higher in recent months and the recovery in manufacturing globally is a big part of the story.

"It's very encouraging that UK manufacturers have positioned themselves to capitalise on the windfall of a competitive pound and resurgent world economy.

"While growth and confidence hasn't been knocked off track by the snap election, it is not plain sailing from here. There is the continuing challenge of managing input cost increases; ensuring success in attracting and retaining the skills that are in increasing demand and driving up investment in the sector."

Tom Lawton, partner and head, BDO Manufacturing, said: ""The Q2 survey results present a very positive and exciting picture for manufacturing, showing increasing orders in both home and export markets.

"The continued growth in world markets such as Asia, North America and Europe are driving positive demand conditions. These results show yet again that manufacturing has the resilience and the qualities to form one of the foundations of a successful UK economy.

"Brexit does create uncertainty and it is important that the new government is clear that Brexit will be structured in a way that serves the best interests of business.

"As part of this it is vital that we remain open for business and negotiate new trade agreements with the EU and other key markets so that international markets remain open and accessible as soon as Brexit is completed."