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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.