Manufacturing SMEs in England are defying reports of an economic slump to register rising sales and target future growth, the Manufacturing Advisory Service's (MAS) National Barometer has revealed.
Over 50% of the 700 manufacturers surveyed reported a spike in orders in the last six months.
The mood was bullish over further growth with 53% backing an prolonged upturn in the back end of 2012.
The confidence is leading to jobs growth, MAS found.
A third of the companies surveyed outlined plans to hire for new posts with 55% are expecting the size of their workforce to stay the same.
However, there does appear to be a potential slowdown in order books, MAS reported,
Only 40% of respondents noted an increase in enquiries, compared with 49% in the last Barometer.
The number of companies considering investment in new machinery and premises over the next six months also fell from 44% to 38%.
David Caddle, MAS area director, commented: "The results are still showing positive signs of growth and expansion, although there are indications among SME manufacturers in England of a more cautious outlook going forward."
"This is not unexpected when you consider the recent economic forecasts and, historically, it takes a little longer for the slowdown to cascade its way down the supply chain and to the smaller companies."
He added: "However, we have to make sure we don't talk ourselves into another downturn."
Business minister Mark Prisk said: "This latest MAS Barometer shows that many small manufacturing firms across the UK are growing and expect to continue to grow despite the challenging wider economic environment."