THE manufacturing recovery received a surprise boost yesterday after a survey showed demand from overseas helped lift orders this month.
Economists said the latest findings from the CBI were “reassuring” after the business group reported that a balance of 1% of manufacturers said order books were above normal - up from minus 10% a month ago.
The improvement was driven by a better performance from exporters, while expectations for growth over the next quarter rose for the first time since March.
The survey was welcomed after a raft of gloomy data highlighted a slowdown in growth in the sector, triggering fears that Government plans for an export-led recovery were failing to gain momentum.
Liz Mayes, assistant regional director of CBI North East, said: “There’s no doubt that exports will drive growth and the North-east is well positioned to benefit from this but... there is still uncertainty around international events, which is having an impact.”
The CBI warned that the sector still faced a growing threat from stock market volatility, which has hit business confidence amid concerns over high unemployment.
Last week official figures showed that the jobless count on Teesside rose again after four successive monthly falls, triggering calls for the Government to do more.
Yesterday a study by the GMB union showed Middlesbrough had the second worst unemployment level in the UK at 14.4%, behind Nottingham (14.8%).
