Manufacturing strongest in 15 years
Feb 01 2010
Manufacturing at 15-year high
Small manufacturing firms are the most optimistic about export prospects for the year ahead since October 1995, according to the Confederation of British Industry (CBI).
Of the 418 surveyed, 27 per cent say the volume of export orders rose in the three months to January, while 25 per cent say it fell. The balance of 2 per cent is the strongest figure since January 2008.
Russel Griggs, chairman of the CBI’s SME Council, says: ‘Smaller manufacturers have been pinning their hopes on the relative weakness of sterling to boost overseas orders and offset weak demand at home. It is therefore encouraging that exports are now stabilising.’
Research from the Chartered Institute of Purchasing & Supply (CIPS) and Markit, indicates UK manufacturing rose to a 15-year high at the start of 2010.
The Purchasing Manager's Index, which provides a single figure indication of operating conditions in the manufacturing sector, rose to 56.7, from 54.6 in December, to record its highest level since October 1994.
Rob Dobson, senior economist at Markit, says: ‘January data point to a robust start to 2010 for the UK manufacturing sector. The main driver of growth was a surge in new export orders, as improving global market conditions and the ongoing weakness of sterling led to the sharpest rise in foreign demand recorded in at least 14 years.
‘The survey therefore raises hopes that the sluggish recovery from recession signalled by GDP data in the final quarter of last year will have gained momentum as we move into 2010.’
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