Growth in the UK's manufacturing sector accelerated last month, according to a survey which showed output, orders and employment all picking up.

The Markit/CIPS purchasing managers' index (PMI) for manufacturing rose to 56.9 in August from 55.3 in July. A figure above 50 indicates expansion.

The PMI reading was the second highest for more than three years.

Business optimism improved to a three-month high in August. Positive sentiment was attributed to rising demand, new product launches, efforts to improve market share and expand into new markets, a stronger global economy and planned investment spending.

Over half of companies expect output to be higher in one year's time, compared to less than 7% that forecast a decline.

Rob Dobson, director at IHS Markit, which compiles the survey, said: "The UK manufacturing sector continued to show signs of solid progress during the third quarter, with rates of expansion in output, new orders and employment all gathering pace in August.

"The key question is whether this positive start to the second half of the year can be sustained? This is looking increasingly likely during the near-term, given the breadth of the expansion.

"Business conditions improved across the three main subsectors - consumer, intermediate and investment goods - and at smaller and large-scale producers alike. Business confidence also rose to one of its highest levels in over a year."

Chris Pockett, head of communications for manufacturing firm Renishaw, which employs over 2,200 people in Gloucestershire, said things were currently very positive, with exports helped by the weak pound.

"In our results at the end of June we had record turnover of £532 million and record employment levels with profits of £109 million, which were our second highest ever."

However, with the uncertainty over the Brexit negotiations, Mr Pockett said they were keeping "a very close eye on things".

At the other end of the business scale, Andy Freeman, who runs fan manufacturers Cadfan in Mitcheldean on his own, agreed that things were looking positive.

"Over the last couple of months things have been looking up," he said.

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