The continuing manufacturing recovery has seen orders rise and job losses slow in pace across the UK, new research has revealed.
The latest quarterly report by the Confederation of British Industry (CBI) found that order books strengthened in most areas of the country, with manufacturers in the North East, Yorkshire and the North West faring particularly well.
The CBI said that optimism in these regions, along with Wales, improved by more than at any time in the last decade over the past three months.
The employers’ lobby group said the recovery should dampen down job losses. Around 17,000 jobs are set to be shed over the current quarter, compared with 25,000 in each quarter of 2003.
Export optimism hit a nine-year high, with manufacturers in Wales, the South West and the North West most hopeful of trading abroad.
However, overall optimism remained low in the West and East Midlands, with firms in these areas failing to benefit significantly from the economic upturn.
UK manufacturers have endured a torrid last three years, with job losses and low productivity rife in the sector. However, the CBI announced earlier this year that the recession in the sector was officially over, with firms boosted by the improving economy.
Interest rates, previously pegged back by the slump in manufacturing, have now risen since the revival began to take hold, although some analysts have warned that the industry needs more time to recover before rates are increased again.
Doug Godden, of the CBI, welcomed the report.
“It is welcome news that total orders and output have improved for manufacturers in the majority of UK regions in the last few months.
“The improvement has slowed the rate of job losses which have crippled the sector over the past year. However, some job shedding will continue,” he said.
