Increase in orders at a 15-year high (From The Bolton News)

Increase in orders at a 15-year high

11:48am Thursday 4th February 2010 in

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BRITAIN’S fragile economic recovery was given a boost after figures showed growth in the manufacturing sector hit a 15-year high last month.

The sector started 2010 in resurgent fashion, with new orders setting a multi-year high and employment growing for the first time in nearly two years, according to the Chartered Institute of Purchasing & Supply (CIPS).

Its monthly headline activity index, where a score over 50 registers growth, showed a reading of 56.7 in January - the highest level since October 1994.

The result, ahead of an upwardly revised 54.6 seen in December, was far better than expected after many economists pencilled in a small decline.

A rise in employment also came as a welcome development for the sector, albeit following a “slight increase”, said CIPS.

UK manufacturers have cut many thousands of jobs after being hammered by the recession.

But the weak pound is providing a much-needed boost, with new export orders at the highest level since 1996.

This, combined with improvements in domestic demand, helped total new orders rise at the fastest pace in six years.