THE gloom surrounding manufacturing may finally be lifting, according to figures from the CBI.

The CBI's monthly survey of industrial trends showed that manufacturers' expectations for output over the coming four months were at their most positive since March.

A total of 31 per cent of manufacturers polled expected the volume of their output would rise, against 19 per cent who thought it would fall.

The balance, plus 12, compares with a figure of plus one reported last month, but the figure concealed significant differences between sectors, said the CBI.

Larger firms with more than 500 employees were more positive in their expectations.

Small and medium-sized firms thought output would remain stable over the coming four months.

Manufacturers in several sectors, particularly iron and steel, metal products, motor vehicles, paper, printing and publishing, expected output to fall markedly over the next four months.

Sudhir Junankar, CBI associate director of economic analysis, said: ''As orders have improved, manufacturers have become more confident about stepping up production into the New Year. 'The results of next month's quarterly survey will be closely watched to see if the upturn in output becomes firmly established