Demand for UK goods reaches highest level for two years

Date: 20th August 2010

Manufacturers could see their company accounts given a boost from improved demand for UK goods.

According to the latest Confederation of British Industry's (CBI) monthly Industrial Trends Survey, demand for products made in the UK is at its highest level in two years.

The survey showed that 21 per cent of manufacturers have seen total orders above normal levels, compared to 34 per cent experiencing a below normal number of orders.

This gives a rounded balance of -14 per cent, the highest since August 2008 and a two per cent increase on July's balance of -16 per cent.

A greater demand for UK goods from abroad appeared to be the driving factor behind the improved figures, with 24 per cent of manufacturers reporting export levels to be above normal.

Lai Wah Co, CBI head of economic analysis, said: "Prospects for the manufacturing sector remain very positive.

"Demand is steadily improving, helped by the revival of export orders after some weakness last month, and manufacturers expect slightly stronger production growth in the three months ahead."

This week it was also announced that the UK retail sector saw better than expected growth in June of 1.1 per cent.