UK manufacturing bounces back in Q1

UK manufacturing has recovered strongly in the first quarter of 2004 with growth in the domestic and exports markets.

A survey by the British Chambers of Commerce (BCC) has found that a net balance of 19% of manufacturers saw higher home sales.

This was the highest level since the first quarter of 1997.

Export sales were at their highest levels in seven years while export order books also reached a seven year high.

Manufacturing employment rose to its highest level since 1998 while business confidence was at its highest since the last quarter of 1999.

Despite these strong readings, manufacturing firms intend to spend less on investments.

Analysts believe it was this data that kept the Bank of England from raising interest rates at its last meeting earlier this month.

However, this forecast has yet to be verified by official figures that are due to be released by the National Statistics Office in Britain.