Survey reveals manufacturing recovery is gathering pace

| June 7, 2010 | 0 Comments
”Survey

A joint survey by manufacturing organisation, the Engineering Employers’ Federation (EEF) and accountancy firm, BDO, has revealed that Britain’s manufacturers are bucking the trend in the sluggish economic recovery.

According to their research, an increasing amount of manufacturing firms have experienced an increase in demand from overseas markets.

The balances of manufacturers reporting increases rather than decreases in output and new orders during the last three months were 30% and 34% respectively, compared to 8% and 2% in the previous survey.

Meanwhile, the domestic new orders balance was 24%, while the export orders balance surged to 23% - both record highs.

In addition, a balance of 22% of companies expected to raise output in the next three months, however, this was down from 28% in the previous three months.

A balance of 12% of companies expect a rise in domestic orders - compared with 21% in the previous three months. The expectations balance for export orders dropped from 24% to 15%.

Commenting on the data, EEF chief economist Lee Hopley, said: “Manufacturers are pulling in more export orders on the back of a recovering world economy and a better outlook for the domestic market is giving companies some confidence to recruit again.”

However, he cautioned: “Manufacturers are very aware that economic headwinds could still pick up again as there are still risks to a sustained recovery.”

The report also expects the manufacturing sector to grow by 3.5% both this year and next – far exceeding the remainder of the economy.

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