Manufacturers report output boost

Date: 22nd January 2010

Manufacturing firms in the UK have reported the first rise in production levels for more than two years, new research has shown.

According to the Confederation of British Industry (CBI) report, export orders in the sector increased for the first time since January 2008 as a result of a weak sterling boosting global demand.

This resulted in 31 per cent of firms reporting a production rise, compared to just 20 per cent recording a fall.

The +11 per cent balance represented the highest figure for three years.

Ian McCafferty, the CBI's chief economic adviser, said: "After nearly two full years of falling output, manufacturers are seeing a return to modest growth, thanks in part to improved overseas demand and much slower stock reductions.

“It is encouraging that the weaker pound is now providing firms with some respite as global demand improves."

The report also showed that job looses in the sector are beginning to slow with a balance of -13 per cent reporting a workforce reduction, compared to a balance of -34 per cent in October 2009.