The latest report into the UK’s manufacturing industry has shown that the sector is benefiting from export orders being at their highest rate since February 2011..
Demand has been growing, even beyond traditional destinations like North America and Europe, such as Asia, Brazil and Scandinavia, according to the Chartered Institute of Purchasing & Supply (Cips).
The report has been announced as the Deputy Prime Minister, Nick Clegg, is visiting Colombia and Mexico to sing the praises of British exports to the South Americans.
This news comes despite the pound strengthening and with business spending on IT software and plant machinery being at its highest in two decades.
Samuel Tombs, from Capital Economics, said: “While the stronger pound may begin to hinder a recovery in exports, the easing of credit constraints and the squeeze on household’s real pay should support a further revival in domestic demand for investment and consumer goods.”
There is also good news in regards to employment. New staff members in the manufacturing industry are being hired at their fastest rate in two years. There is hope this will offer a decent contribution to reaching the Bankof England’s 7% unemployment level to raise interest rates.
Come Thursday the Bank will meet to decide their plans. Economists do not predict a change in rates just yet, but any statement given may hint at any future plans.
Europe is also seeing similar growth with their manufacturers growing at their fastest since May 2011, including Greece who has seen expansion on their sector for the first time since August 2009.