Positive outlook as manufacturing leads fightback

BRADFORD'S manufacturing sector is now driving the city's economic recovery, according to its Chamber of Commerce.

The latest survey of companies in the district reveals that manufacturing firms have improved their sales and orders significantly from six months ago.

The change has happened in both domestic and international markets, leading to enhanced turnover and profit expectations, said the Chamber.

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The performance of the service sector has been more mixed, although there are some positives in this area. While domestic sales dropped back slightly, orders improved, but foreign sales and orders showed a substantial improvement.

The service sector cut back its investment in training and equipment, while manufacturers held a stable position in training or slightly improved investment in equipment.

Recruitment is to remain unaffected in services but manufacturers are expecting to take on more staff as the year goes on, said the Chamber.

Harold Robinson, the Chamber president, said: "It's good to see manufacturers being able to report some positive news.

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"Bradford still needs strength and confidence in both sides of commerce and industry – services and manufacturing – so we would hope that progress can be sustained throughout the year ahead.

"It's not surprising that investment is fairly flat right now: it's the year end and businesses want to know how they might be affected after next month's General Election. It's watch and wait just now.

"There was little change in pressures on prices, except for concerns over wages and raw material costs in the service sector.

"Both sectors have increased worries over corporation tax levels, with manufacturers wary of exchange rates."

Lisa Cooper, managing director of JH Clissold, producer of

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fabrics for clothing, added: "There is no doubt that buyers both in Britain and offshore want the quickest possible response.

"Yes, there is still a lack of confidence in the market place but a fast response allows buyers to de-risk their decision. The closer to the date of sale a buyer can make a decision, the better they sleep at night.

"The threat of China is still very real, but with a 30 per cent drop in the pound dollar exchange rate since last November, buyers can see that

UK suppliers are a safer bet, even if much of our supply chain – wool and dyestuffs, for instance – is priced in dollars."