Sep. 17--Manufacturing orders fell less than expected and firms became more optimistic about future output in September, according to a new survey.

The Confederation of British Industry's Industrial Trends survey's order book balance rose to minus-48 from minus-54 in August. That was the highest since January, and compares with analyst forecasts it would be minus-50.

Ian McCafferty, chief economic adviser at the CBI, said: "The end of the dramatic destocking in the first half of the year has allowed manufacturing output to stabilise, but order books remain depressed and the outlook uncertain." Howard Archer at IHS Global Insight said the survey reinforces the "belief that the manufacturing sector is set to make a positive contribution to GDP in the third quarter, and help the economy return to growth".

The relative weakness of the pound is helping UK manufacturers to be competitive abroad, he added.

"Demand is also showing signs of picking up, at least temporarily in important overseas markets as well as at home. Nevertheless, the CBI survey is still far from robust, and doubts remain about the strength of demand over the medium term, particularly once stimulative measures start being withdrawn."

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