Confidence in the Manufacturing Industry Grows

Confidence in the Manufacturing Industry Grows

The manufacturing industry makes up about 10% of the current UK economy. EEF pointed out the new Markit figures underlined; “the important role being played by industry in the UK’s continuing recovery.”

UK manufacturers are more confident in their growth prospects than at any other time since the financial crisis.

A recent survey carried out by industry body EEF found amongst 275 manufacturing firms who took part during April and May this year, they found 34% of the companies expected their growth to improve in the upcoming quarter, the highest level of confidence since 2007.

The manufacturers surveyed expect 3.6% growth in 2014. Chief Economist at EEF, Lee Hopley said; “There is a definite sense of confidence amongst manufacturers. This should help sustain broad based growth across the UK.”

Another survey by research firm Markit found that manufacturers were confident about investment and hiring. They discovered UK factory output is demonstrating one of its strongest growth periods for the past 22 years. The PMI has revealed that the sector has seen growth every month since March last year. Production is expanding at a quarterly rate of around 1.5%. However, the sector is still 7.5% smaller than it was before the financial crisis.

The manufacturing industry makes up about 10% of the current UK economy. EEF pointed out that the new Markit figures underlined “the important role being played by industry in the UK’s continuing recovery.” Deputy Chief Economist at EEF, Neil Prothero said; “The sector is firmly on track to expand for a fifth consecutive quarter, its strongest performance in four years.”

The survey was carried out jointly with the help of accountancy firm BDO and the results highlighted that the growth was being driven by domestic demand. Head of Manufacturing at BDO Tom Lawton warned that “given the mixed international outlook, a strong recovery in exports this year is still uncertain.”

So while things are looking positive for the UK manufacturing sector many businesses are still under immense financial pressures.

Sources:

BBC News – Manufacturers confident on growth for 2014, says EEF

BBC News – UK manufacturing recovery continues in May

If you found this article informative and helpful...Please Share!

Leave a comment

Related posts

Sign up for our newsletter and support Neurocare’s ROSA robot project…

Our newsletter is full of financial advice for businesses and individuals and latest news.

We are helping Neurocare to fund their ROSA machine. This state of the art robot is the first of its kind to be brought to the UK and installed in a NHS hospital here in Sheffield. - Read More

Currently for every newsletter sign up we receive, we will donate £2 to Neurocare.

Disclaimer: We guarantee privacy with your information and you will not receive spam emails for us.