Is UK Manufacturing on the Mend?

The Guardian newspaper is reporting today that British firms' export orders from the resurgent eurozone are at their strongest in 10 years. Also, business investment has picked up firmly in the first quarter, boosting hopes that UK industry is on the road to recovery.

The UK manufacturing sector is seen as recovering in part because of increased demand for capital goods from overseas. So says the Confederation of British Industry (CBI). The CBI's monthly survey indicates that the proportion of manufacturing firms reporting a rise in export orders compared to those that revealed a fall was at its highest in more than a decade.

"The outlook for UK manufacturing is more encouraging than it has been for some time on the back of the strong performance of eurozone economies and continued growth in the U.S.," said Ian McCafferty, chief economic adviser of the CBI.