The study investigates the reaction of manufacturing sector to recent economic slowdown and current economic recovery that is accompanied with a sharp increase in exports of goods. Dynamics of manufacturing output, employment, exports and sales as well as structural changes regarding output, employment and sales structure are examined. As mainstream view of economists suggests that the current economic recovery is due to sharp increase in exports of goods that are, as a rule, mainly produced in manufacturing sector, hence the study examines the dependence of manufacturing on global demand changes. In the study, the export dependency ratio is used to evaluate the range of dependency on export markets. The research is focused on manufacturing sector in Latvia, Lithuania, and Estonia that are analysed and evaluated in more detail, as well as the EU-27 data are covered in order to reveal general trends in the common market. The study investigates the time period of 2008-2011. It is found that manufacturing dependence on export markets has increased in economic crisis and post-crisis period. In conclusion, the paper contains recommendation to policy makers.