IHS Markit’s latest Purchasing Managers Index (PMI) has revealed that export orders among British manufacturers rose for the 23rd consecutive month in March.
According to the report, overall factory activity rose from 55 in February to 55.1 in March, despite most economists forecasting a fall to 54.7.
Generally speaking, any reading above 50 is considered to be indicative of growth.
Rob Dobson, Director at IHS Markit, said that the figures suggested that “business optimism is holding steady” among British manufacturing firms.
“The sector looks set to make further slow and steady progress as we head through the spring,” he said.
However, Mr Dobson warned that manufacturing businesses could eventually find it difficult to maintain this steady pace.
“The key question is whether growth can now be sustained, albeit at a lower level, into the coming months,” he said.
Mr Dobson suggested that while the weak value of sterling continues to attract overseas clientele, the pound is gradually increasing in value – which could eventually result in a fall in export orders.
Currently, it is estimated that the manufacturing sector accounts for approximately 10 per cent of all national output for the UK.