A surprise pick-up in demand from a hitherto stagnant home market has delivered British industry its strongest order books since December, 2004, even though there was no improvement in exports.
The CBI's industrial trends survey for August also shows a growing number of manufacturing companies planning to take this recovery as an opportunity to pass more of oil, energy and commodity costs on to their customers.
Even so, industrialists describing their total order books as "below normal" outnumbered those saying they were "above normal" by eight per cent of the sample.
Prospects for rising output are seen as rather less buoyant than in June and July, possibly because stocks of finished goods have risen quite strongly in the past month.
The CBI pointed out that while it was conducting this survey, covering 682 manufacturers, between July 25 and August 16, freight rates rose by about 17 per cent and oil prices by four per cent.
The improvement in demand was driven by orders for capital goods - a sector which includes shipbuilding and aerospace, as well as industrial machinery. But there was also a more modest improvement in orders for consumer goods.
Together, the CBI said these offset slackening demand in the intermediate goods sector, which includes hand tools and industrial chemicals.
"The outlook remains encouraging for UK manufacturers," commented Ian McCafferty, the CBI's chief economic adviser.
"But it is disappointing export orders have not improved more, given the current revival of the eurozone economy, our principal export market.
"Manufacturers have absorbed surging energy and raw material costs for months, which has meant a squeeze on profits. With better demand it is not surprising more firms hope to pass these on in the form of higher prices.
"However, with continuing intense international competition, opportunities to do so will remain limited."
While manufacturers expecting to raise their home market prices in next three months outnumbered those who think they will fall by 13 per cent - up from six per cent in July and eight per cent in June - an overwhelming 66 per cent expect no change at all.
Similarly with output, where 53 per cent expect no change. But here the balance of 11 per cent looking for an increase is down from 14 per cent in both June and July.
Industrialists describing their stocks of finished goods as "more than adequate" outnumbered those saying they were "less than adequate" by 15 per cent, a sharp jump from a balance of only five per cent last month. But there were still 61 per cent saying their stocks were just right, "adequate", no more and no less.
Economists doubted whether these generally reassuring, though potentially inflationary findings will make the Bank of England's interest-setting committee more likely to raise its official rate again this autumn.
John Ratcliffe at IFR Markets described the survey as slightly bearish on balance "but not enough in its own right to upset the applecart too much".
HSBC's John Butler agreed. "The message is a continuation of a trend that has been in place for a number of months and is unlikely to make much impact on the financial markets," he said.