Export boost helps construction manufacturers shrug off domestic slump

Over 50% of manufacturers posted rising sales overseas -the CPA's State of Trade survey showed. The growth was led by light side firms who accounted for 35% of new business. Kelly Forrest, CPA senior economist, said: "Against a difficult domestic backdrop, it is encouraging to see that exports are growing strongly, especially considering that export growth is a fundamental part of the government's economic strategy." Increased demand from Asia was a key driver for growth, Forrest revealed. The breakthrough showed efforts to develop links beyond the EU were bearing fruit, the CPA said. However, the boom in export sales could not mask growing concern over the fallout of economic pressures in the UK, Forrest concluded. She said: 'Cuts to public sector capital budgets impact on the ground and weak economic growth constrains the private sector recovery. 'Strong input cost inflation also added to the pressures on manufacturers as price increases in raw materials, energy and fuel all had a significant impact on manufacturing costs." Eight in ten heavy side firms expect unit costs to increase in the next year, the CPA survey found. A further eight in ten light side firms expressed fears over the strength of future demand.