UK Manufacturers See Exports Demand Rise Further

UK manufacturers said exports demand has lifted for a fourteenth successive month.

According to researcher Markit, UK manufacturers saw yet another increase in new export orders during May from a broad mix of countries across the world.

Rising exports come as the global economy gradually recovers from financial crises that have plagued it since 2007.

That includes the troubled eurozone, one of the UK's largest trading partners, which suffered from a painful sovereign debt crisis that nearly broke up the currency union in 2010.

Markit also said its purchasing managers index (PMI) for UK manufacturing slowed slightly to 57 in May, down from April's 57.3 but still well above the neutral 50 mark.

It means output in the UK manufacturing sector has been growing for fifteen months, helping to drive the wider economic recovery which the Bank of England forecasts will see 3% GDP growth in 2014.

"Sustaining the rebound and continuing to push towards rebalancing the UK economy towards manufacturing therefore remains critical," said Rob Dobson, senior economist at Markit, which compiles the surveys of purchasing managers ever month.

"On those scores the latest survey provides some real positives."

Higher export demand is good news for Chancellor George Osborne who is targeting a £1tn total value of UK exports by the end of the decade, a goal he is widely expected to miss.

It also suggests that the economy is rebalancing more towards manufacturing and trade, another target of Osborne's and policymakers who are concerned that the UK relies too much on consumer spending and the vast service sector for GDP growth.