LONDON: Britain’s manufacturers have provided a glimmer of optimism about the outlook for exports, with new research pointing to a rise in orders and sales.
Almost half the 2,300 manufacturing companies interviewed in a new survey said they had increased export orders in the first quarter of the year, compared with 36 per cent the previous quarter.
In comparison, the number of service companies with increased export sales remained flat at 33 per cent, according to the report from the British Chambers of Commerce and DHL Express.
The findings follow recent data dimming hopes that manufacturing and exports would lead the way in Britain’s economic recovery. Manufacturers have been struggling against a strong pound and weaker investment spending.
This month, the Markit/CIPS survey of manufacturing purchasing managers suggested growth in activity in British factories had declined in April. This came just a week after overall economic growth figures for the first quarter came in far weaker than expected.
But John Longworth, director-general of the BCC, said manufacturers were turning to “larger and faster-growing” export markets abroad to fuel their growth ambitions.
“Encouragingly, the increase in export sales and orders has come about in spite of the rise in the pound against the euro over recent months,” he said.
According to its survey, about 44 per cent of manufacturers increased their labour force in the first three months of 2015. The majority — 84 per cent — of these new jobs were full-time positions, up from 61 per cent in the fourth quarter of 2014.
However, the sector is still feeling the pain of a strong pound. The survey found that 55 per cent were affected by the impact of exchange rates on their ability to trade globally, compared with 48 per cent in the previous quarter and 34 per cent a year ago.
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