Engineering news
British manufacturers reported growth in export orders and sales in the first quarter of the year,
according to a quarterly report from the British Chambers of Commerce (BCC).
The survey, running since 2006, of more than 2,300 exporting firms has revealed almost half of manufacturing firms surveyed (46%) recorded increased export orders in the first quarter of 2015, compared to 36% in the fourth quarter of 2014.
In addition, 43% of manufacturing firms reported an increase in export sales, up from 38% in the fourth quarter of last year. The highest increase in exporting activity was recorded in East Midlands, West Midlands and the South West.
Furthermore, almost half of exporting manufacturers surveyed (44%) increased their labour force in the first three months of 2015. The vast majority of these new jobs were full-time positions (84%), up from 61% in the fourth quarter of 2014.
This level of growth has been achieved in the face of increasing pressure from higher exchange rates in particular the rising pound against the euro, which reached a seven-year high in early March 2015. More than half of manufacturing firms surveyed (55%) said that exchange rates are having an impact on their ability to trade globally, compared to 48% in Q4 2014 and 34% at the same time last year.
John Longworth, director general of the BCC, said: "Manufacturers are turning to export markets abroad to fuel their growth ambitions as the slowdown in domestic growth persists. 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 - a credit to the strength and expertise of the UK’s manufacturing sector.
“Despite these positive figures, real progress towards eliminating the UK’s trade deficit remains elusive. At the heart of the new government’s agenda must be ambitious plans to improve the UK’s trade performance – we have to develop a pipeline of new exporters and help existing exporters break into new markets. Only then will the UK regain its position as a trading powerhouse and unlock future economic growth,” Longworth added.