Manufacturing exports increase

A surge in overseas demand for

manufacturing goods has lifted export order books to their highest level since 1995, according to the

latest monthly industrial trends survey published today.

The balance of manufacturers reporting export orders to be "above normal" was three per cent, the first positive balance since February 1996 and the highest level since August 1995 (+7%). This represents a marked improvement from October’s balance of minus 11 per cent.

Total order books also improved, regarded as 'below normal' by a balance of minus six per cent, up from minus 20 per cent in October, and more in line with the levels of August and September. All major sectors saw an improvement in total orders, with the capital goods sector the strongest and consumer goods the weakest.

As a result, the level of stocks relative to expected demand is now at its lowest level (+2%) since December 1988 (+1%), and well below the long-term average. However, a balance of five per cent of firms expects manufacturing output to rise over the next three months, pointing to only moderate growth in coming months.