Britain’s factories are poised to raise both output and prices over the coming months as they continue to adjust to the impact of the EU referendum in June.

The latest snapshot of the economy from the Confederation of British Industry (CBI) showed that order books for UK manufacturers are strong and production is expected to rise at its fastest pace in almost two years over the next three months.

But the employers’ organisation warned that the fall in the value of the pound since the Brexit vote was pushing up the cost of the raw materials and components used by industry and factory gate prices were going up at their fastest rate since early 2014.

The decision in June to leave the EU has been a mixed blessing for manufacturers because it makes the cost of imported fuel, metals and half-finished goods more expensive but reduces the cost of exports.

Rain Newton-Smith, CBI’s chief economist, said: “It’s good to see manufacturers’ overall order books at healthy levels and the outlook for output growth remaining robust as we head into Christmas. But the weak pound is beginning to make its mark, and prices are expected to rise, especially in the food and drink sector. On the flip side though, export orders remain above average.

“To bolster British industry, manufacturers want to see bold decisions in the autumn statement. A crystal-clear focus is needed on infrastructure, investment and innovation from the chancellor, so that firms are given the very best environment in which to grow, both at home and abroad.”

The CBI’s survey of 430 firms showed that order books had returned to the levels seen in the summer and were well above their long-term average.