MANUFACTURING is performing ahead of expectations according to two studies published today.

The CBI’s latest quarterly SME trends survey found that 41% of manufacturers saw output rose in the three months to July, while 20% said it fell. The resulting balance of 21% is the fastest growth since April 1995.

A report by EEF and BDO, Economic Prospects 2010, also has positive news for the sector.

It has forecast manufacturing will grow by 3.8% this year and 3.4% in 2011, outstripping that in the economy as a whole, which is forecast to expand by 1.1% in 2010 and 2.1% in 2011.

EEF’s North West director David Ost said: “Manufacturing has exceeded expectations so far this year with a broad-based recovery, supported by growth in world trade, a weaker pound and restocking.

“But, with looming spending cuts here and more uncertainty in key markets, the prospects for different sectors will diverge over the coming year.”

Tom Lawton, head of manufacturing at BDO LLP added: “Manufacturers should remain optimistic.

“Despite the EU economic slowdown, there are fantastic opportunities for growth in other countries like China and India.”

Its report highlights the influence of the BRIC – Brazil, Russia, China and India – economies on export levels.

It shows that in all sectors there has been a larger percentage increase in exports to the developing BRIC economies than developed ones, particularly in transport and metals, which reflects their stronger performance.