The Close Brothers Business Barometer also reveals that almost 21% of manufacturing firms are expecting to give their staff a pay rise within the next 12 months.

“While corporate balance sheets are still being squeezed to the last penny, it’s encouraging to learn that employees within the manufacturing sector are beginning to see an increase in their pay packets,” says Steve Gee, managing director of the manufacturing division at Close Brothers Asset Finance. “The last few years have been challenging to say the least. Hopefully this is a sign that things have begun to pick up.

“While this is good news, the survey has shown that the picture may not be quite so rosy in other areas,” he adds. “Almost one in ten manufacturing firms have been declined access to bank lending in the past six months, and a further one in ten have admitted that while they have identified opportunities for growth, they have been unable to take advantage of them due to a lack of adequate funding.”