Latest manufacturing data shows signs of recovery
May 13th 2010

The CBI commented on the Index of Production data for March which showed a 2% rise compared with the previous year. Ian McCafferty, CBI Chief Economic Adviser, said: “This data provides encouraging signs of a broad-based recovery within the manufacturing sector, supported by the competitive level of Sterling and improving economic conditions.

“Our recent Industrial Trends Survey points to further solid growth in manufacturing output in the months ahead, with both domestic and external demand expected to strengthen somewhat.”

The EEF Chief Economist, Lee Hopley, said: "We are now seeing a broad-based recovery for a sector hard hit by the recession, with robust manufacturing growth suggesting stronger than expected economic growth in the first quarter.

"Whilst manufacturing and exports are now providing the foundations for a sustained recovery and a better balanced economy we can’t take this for granted. A stable government with a credible plan to repair the public finances is needed both to reassure financial markets and underpin a sustainable recovery."

More articles from CBI: