Britain's manufacturing sector entered 2007 feeling positive about the coming year, a survey shows.
The latest quarterly regional trends survey from the Confederation of British Industry (CBI) shows that strong confidence in the north of England is responsible for the improved outlook.
While the north-west enjoyed its quickest upturn in confidence since 1995, new order expectations in the north-east have rocketed. Export orders in particular are responsible for the rosy forecast.
"UK manufacturing activity has picked up at a rate not witnessed for some time, led by the north of England, and there is a positive outlook for the next quarter," Doug Godden, head of economic analysis for the CBI, commented.
"Even though things are looking up, jobs are still being shed as the sector continues to seek efficiencies in the face of stiff global competition," he warned.
The survey showed that manufacturing employment fell at its quickest rate for nine months, while around 30,000 jobs are estimated to be lost in the present quarter
Britain's manufacturing sector has become increasingly reliant on the export market for its prosperity as domestic demand has remained muted for several years.
A strong economy, which saw GDP rise by 0.8 per cent in the final quarter of 2006, has gone some way towards mitigating this weakness but, according to the Office of National Statistics, the service sector has enjoyed most of this growth.
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