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But domestic and global uncertainty remains high, alongside lacklustre export demand," said the CBI's director of economics, Rain Newton-Smith.
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The world's second-largest economy has faced numerous challenges in recent years, including slowing foreign investment and lacklustre exports because of the weak global economy.
Howard Archer, chief economist at IHS Global Insight, said: "The manufacturing sector has had a pretty torrid 2015 as it has been particularly hampered by the strong pound and lacklustre global growth hitting export orders.
Output and new orders growth moderated in December, and most importantly exports remained lacklustre.
Exports remain lacklustre, and are likely to remain that way when there are precious few opportunities in a slowing global economy and with businesses hampered by a laissez-faire government that does little to support their overseas sales.
Although services exports have been lacklustre, the OBR reckons that this weakness will not persist.
In other markets such as India, China and Brazil, economic prospects were mixed as "both domestic consumption and exports put in lacklustre performances".
However, "lacklustre" capital spending and a tough export market were still dragging on Britain's manufacturing base, he said.
A 2010 survey for the Bank of England suggested the government's drastic deficit-reduction plan may be a reason: 18% of respondents expected to save more in response to higher taxes and reduced public services, and just 3% expected to spend more.This cannot fully explain Britain's lacklustre recovery—higher fuel prices and disappointing export growth are also to blame.
"The export performance in April looks lacklustre, even allowing for the underestimation of oil exports by £700m," he said.
Japanese exports to China increased by a more lacklustre 6.4% compared with the previous year's 27.2%.
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CEO of Professional Science Editing for Scientists @ prosciediting.com