Confidence among British manufacturers surged in April to its highest level in more than eight years, a clear sign the sector is emerging from its year-long recession, an industry survey reported today.
The so-called optimism balance of the latest quarterly industrial trends survey from the Confederation of British Industry, echoing the findings of other recent soundings, jumped to +21 in April from -31 in January.
That was the best reading for the balance - the percentage of business more confident about the period ahead over those less confident - since January 1994.
The deepest manufacturing recession for over a decade appears to be on the turn, said Mr Ian McCafferty, CBI chief economic advisor.
The CBI said the turn round was driven by expected improvements in global trading conditions, which were hit hard last year by the world economic slowdown, and by the September 11th attacks in the United States.
Its survey said firms expected export orders to grow over the next four months for the first time since January 2001.
But the readings about current activity were less positive. The output index actually fell back to -15 per cent from -13 percent in January although the expected output balance rose to +14 from -13.
"This is good news but any recovery at this stage will remain fragile. It will be some time before employment stops falling and firms start investing again," Mr McCafferty said.