Recovery boosts manufacturing

THE fortunes of manufacturers and exporters are reversing as the UK's economic recovery picks up pace, according to two polls out today.

Confidence among small and medium-sized firms is rising for the first time in almost two years and the three-year decline in orders and output is coming to an end, says the Confederation of British Industry.

Some 30% of firms reported a rise in orders over the past three months.

The CBI's quarterly poll also showed an end to the seven-year decline in export orders.

A Lloyds TSB poll revealed that UK exporters achieved the highest levels of export sales balances in six years. According to the Business in Britain survey, 41% of exporters reported an increase in sales over the last six months - almost twice as many as those reporting a decline.

Over a third of companies reported an increase in European sales, while exports to the rest of the world also picked up despite the rise in the pound against the dollar.

Sterling continues on course to reach $2, a rate last reached on Black Wednesday 12 years ago when the UK was expelled from the European Exchange Rate Mechanism.