Exports offer hope for manufacturers

EXPORTS are offering the biggest hope to manufacturers with overseas orders rising for the first time in five months, according to new figures.

Clients in Germany, Eastern Europe and China drove the increase in export demand as overall production remained unchanged in December.

However, the manufacturing purchasing managers index also showed outstanding business fell for the 11th consecutive month.

David Noble, chief executive officer at the Chartered Institute of Purchasing and Supply, said: “There’s no denying that this year will bring both fresh and familiar challenges for the UK manufacturing sector.

“It is encouraging to see output remain steady last month after the declines of recent months, but with the sector highly exposed to a shaky Eurozone, and reports of softening demand – ironing out economic problems in key export partners will be critical to how the sector performs.

“There are fragile signs of growth centred on some very specific parts of the sector where demand remains strong, particularly consumer and capital goods, with some businesses even reporting record growth that defies the gloom. That said for every bright spot there is another business struggling to build momentum.”

The survey suggests price pressures on manufacturers eased with average input costs falling for a second month in a row.

Weak demand and competition limited the rise in factory gate prices.