Manufacturing insurance holders are more positive about the future of their industry, with many thinking the worst effects of the recession may be behind them.
The Confederation of British Industry's quarterly industrial trends survey saw many manufacturing firms predict the pace of decline to slow in the coming three months.
This research, which included manufacturing insurance customers, found 17 per cent expect the volume of sales to rise next month, while 34 per cent predict a fall.
However, the balance of -17 per cent is an improvement on last month's figure of -32 per cent, with the CBI saying the industry can see a "glimmer of hope at the end of the tunnel".
Ian McCafferty, chief economic advisor at the organisation, said: "They still expect manufacturing activity to fall, but at a much slower rate over the next few months."
He added: "With stock levels high relative to expected demand, manufacturers are likely to remain focused on running down their stocks further."
Last month's industrial trends survey, showing figures for April, saw the largest drop in UK manufactured goods for 30 years, which was not good news for manufacturing insurance customers.
