Manufacturing boom continues, says Chamber

BIRMINGHAM’S manufacturing sector is spearheading the fightback against the recession, according to Birmingham Chamber.

Its latest Quarterly Economic Survey shows manufacturing exports have soared in the first three months of 2011.

The Chamber said it found 55 per cent of exporting manufacturers said they had recorded an increase in export sales in the first quarter, and 39 per cent said UK sales had grown as well during the same period.

The results continue a trend in other surveys since the start of the year. Last week, the CBI warned that manufacturing’s recovery could be threatened by inflation .

Leading the way are the automotive and aerospace sectors, which are among those who have taken advantage of strengthening of demand from certain European markets, notably Germany, and the depreciation of sterling. There has also been a surge in demand from emerging markets such as China and India.

Chamber president Dr Christine Braddock said: “This quarter’s QES is welcome news for the manufacturing sector – especially after the less than encouraging results from last quarter.  

“Birmingham businesses have identified rising short-term inflationary pressures as an issue of concern. This is particularly acute across the manufacturing sector were 45 per cent of businesses expect to increase prices, with over half attributing this to increased raw material costs.

“However, our members are clear that export growth is due to the Bank of England keeping interest rates at 0.5 per cent and we would urge them to continue to do so.

But growth in sales for the service sector slowed in the first quarter, with half of all those surveyed saying they had seen no change in sales either at home or abroad.