9:10pm Wednesday 3rd February 2010
Smaller manufacturers are hoping the weak pound will boost orders from overseas, leading to optimism about exports hitting a 15-year high, research shows.
Small and medium-sized firms reported a stabilising in export orders during the three months to January, following seven consecutive quarters of declines, according to business group the CBI.
Overall, 27 per cent of firms said export orders rose during the period, compared with 25 per cent who said they fell, giving a balance of 2 per cent, the strongest figure since January 2008.
Export orders are expected to grow more strongly going forward, with a balance of 8 per cent of firms expecting a rise during the coming quarter, while 15 per cent are positive about prospects for the year ahead, a level last seen in October 1995.
Manufacturing production also steadied during the past three months, although it is expected to fall during the next quarter as overall demand remains weak.
Domestic orders continued to decline, but they did so at the slowest rate since April 2008.
Overall 23 per cent of firms reported a rise in domestic orders during the past three months, but this was more than offset by the 33 per cent of firms that saw a slump, and companies expect domestic orders to fall again during the coming quarter.
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