Growth expected in UK manufacturing

Date: 19th February 2010

Small businesses in the UK manufacturing sector could be among those to benefit from growth in the industry over the next few months, it has been suggested.

According to a recent report form the Confederation of British Industry (CBI), export orders in the sector are expected to continue to improve.

Figure from the latest CBI survey have revealed that 25 per cent of manufacturers expect exports to increase over the next three months, while only 18 per cent are anticipating a fall.

This leaves a balance of +7, which represents the highest level of confidence recorded by the CBI since March 2008.

Ian McCafferty, CBI chief economic adviser, said: "Manufacturing production is slowly recovering as demand for UK-made goods overseas is improving, boosted by the relative weakness of Sterling.

"Stock levels are now much closer to requirements, suggesting the period of aggressive destocking is now over."

However, the organisation also claimed that total demand in the sector remains "weak".

Almost half (46 per cent) of the survey's respondents said their order book were "below normal".