Growth in demand positive for North East manufacturing
Manufacturers in the UK are reporting further output growth in the coming quarter, though at a slower pace than the past few months.
27% of manufacturers who responded to the CBI’s latest monthly Industrial Trends Survey described their orders as above normal, while 26% said they were below normal, leaving a resulting balance of +1%. This is well above the long-term average of -18% and an improvement on the previous months balance of -2%.
This comes as positive news for many businesses in the North East, who have invested in the overseas markets.
Liz Mayes, assistant regional director, CBI North East said: “The North East’s reputation as a centre for export is something that is helping attract business and securing jobs in the region.”
However, the national trend reflects a fall in demand from other economies globally, which appears to be due to the temporary supply chain disruptions following the tsunami in Japan.
The months ahead may also prove to be testing as inflationary pressures remain acute, and high commodity process and import costs will also raise prices over the next three months.
Ms Mayes also commented: “The region still faces a number of challenges over the coming months, particularly those arising from job losses in the public sector.
“However, most of the region’s manufacturers will remain unaffected and separate from this, which is great as it is these businesses that will help our region to recover.”
This was posted in Bdaily's Members' News section by Ruth Mitchell .