DORSET engineering firms are reporting a rise in total output volume in the third quarter of 2000.

Some 42 per cent of firms saw their total output rise, according to EEF South, the engineering employers' association. Less than a quarter of the engineering firms in the South saw output falling over the last three months.

The vast majority of companies remained optimistic, with only 10 per cent expecting a fall in volume over the next quarter.

New orders show an improvement on the last quarter but a quarter of firms report that numbers of employees have fallen. Over the next three months the situation is set to improve with three per cent more firms expecting to increase employment.

EEF South chief executive David Seall said: "The latest results show that confidence is once again entering the market place."