FIRMS of all sizes are reporting recovery in UK manufacturing, but it has slowed recently, according to research.

A survey of more than 400 companies by the CBI also showed that demand for their goods was stronger in this country than abroad.

Export orders fell in the quarter to October, although manufacturers expect domestic orders will continue to grow in the next few months.

Rain Newton-Smith, the CBI's director of economics, said: "It's reassuring to see smaller manufacturers sharing in the continuing recovery, with optimism, output and jobs all rising over the last three months. Sales in the strengthening UK market are looking good but firms are finding export orders much harder to secure.

"International political instability and weak growth in the eurozone is holding back overseas demand.

"But sentiment is still improving and firms expect overall orders and output to expand at a healthier pace over the next three months."