Yorkshire manufacturers were continuing to perform well during the last three months.

The latest business trends survey of 2007 from industry body the EEF states that output and domestic orders are up with export orders holding their own during the second quarter.

The first survey of the year had reported a tailing off of optimism during March. However this does not appear to have materialised with numbers remaining stable and some firms have achieved increases in prices.

Despite the positive findings in the EEF survey, there remains an air of caution but members still expect to see continued improvement in the third quarter, albeit at a slower rate.

Continued improvements in prices and lessened pressure on margins are also anticipated.

David Wilson, of the EEF in Yorkshire, said: "There was an uncertain start to 2007 but things do now seem to be set on a positive course. Looking ahead there is a mood of caution.

"Let us hope that this is a natural response to many false dawns in the past rather than an accurate prediction."

The EEF represents more than 400 manufacturing companies in the Yorkshire region.

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