Output among the UK's small and medium-sized (SME) manufacturers grew at the fastest pace in seven years, according to a recent survey.

The SME quarterly trends survey by the CBI also found that total new orders had continued to rise at a strong pace in the three months to July, with export order growth the highest since April 2011.

Employment rose at a robust rate and hiring intentions for the next quarter remain solid. However, respondents' concerns that skilled labour shortages may limit output in the near-term rose to the highest since October 1989.

Cost pressures for businesses remain high, though had eased compared with the previous quarter. The price of manufactured goods leaving the factory gates continued to rise strongly compared to the first quarter. Looking ahead, the price of goods for the UK market is expected to rise at a softer pace, whereas those for overseas destinations are expected to continue rising strongly.

Alpesh Paleja, CBI principal economist, said: "It's encouraging that activity among SME manufacturers has risen strongly over the past three months. Firms are clearly able to exploit the competitiveness gains from a low exchange rate and a firm global backdrop.

"But the boost from a lower exchange rate will fade over time, so maintaining frictionless and tariff-free trade routes with the EU will be critical for future exporting success. This is particularly true for SMEs, as preparing for the UK's exit from the EU is significantly more difficult for smaller companies facing greater pressure on their resources.

"There are clearly other concerns on SMEs' minds too, notably labour shortages, demonstrating the need to continue accessing talent from overseas while pursuing homegrown skills development as part of a meaningful industrial strategy."

Here at Punchline, we're pleased to hear this encouraging news for SMEs who are the backbone of the UK economy. It's time to stop forecasting gloom and doom over Brexit and focus instead on the fantastic opportunities for the future of British industry.

What do you think? Email mark@moosemarketingandpr.co.uk