Large industrial companies around the world are defying fears of a “double-dip” recession, reporting signs of increasing strength in demand and striking a cautiously optimistic note about the growth of the global economy.

Many industrial groups reported better-than-expected profits for the second quarter and raised their full-year growth forecasts. However, big manufacturers could be held back by their inability to secure vital components from supply chains weakened by the downturn and unable to increase production fast enough to meet demand.

Caterpillar, FedEx and Honeywell in the US, Honda and Hitachi in Japan, and Siemens in Europe all raised their outlooks last week, while results from companies such as Boeing, Nissan, BASF and VW exceeded analysts' consensus forecasts.