MANUFACTURERS were given a boost yesterday as an industry survey showed export orders rose to a ten-year high this month.

For the first time since February 1996, as many firms said export orders were above normal as below, driven by renewed demand for capital goods, such as industrial engines and aerospace equipment, the Confederation of British Industry (CBI) said.

But analysts warned the sector's recovery remained fragile with domestic orders lower than expected and manufacturers unable to pass on the increases in metal and oil prices.

Industry expert Alan Hall, regional secretary of EEF Northern, said the North-East was having its fair share of activity, but companies remain cautious of increasing cost pressures.

"There is a healthy picture for the manufacturing sector in the region," he said.

"However, I still need to sound a note of caution. There are some difficulties in the manufacturing sector in terms of the cost of raw materials and other prices. While activities are high, there are still issues about margins."

CBI chief economic advisor Ian McCafferty said the outlook was more encouraging than it had been for some time on the back of the "stronger performance of eurozone economies and continued growth in the US".

He said: "While the signs are encouraging, the pick-up in domestic demand earlier in the year has not been sustained and there is still little sign of an increasing appetite for British-made consumer goods. Until this happens, the recovery will remain fragile."