Research published by the EEF, the manufacturers’ organisation, has shown that manufacturing firms are enjoying a surge in performance amid “buoyant” demand from Europe.
Positive trends continued across UK manufacturing, with output balances remaining healthy across all sectors.
Three out of five manufacturers reported an increase in demand for goods from European markets, with exports doing the heavy lifting as demand in all major markets expanded.
Recruitment and employment intentions remain strong and orders were healthy, with the EEF now revising its forecasts upwards for the rest of this year and next, saying manufacturing was now expected to expand by 1.3 per cent in 2017 and 0.5 per cent in 2018.
Lee Hopley, EEF Chief Economist, comments: "Our survey marks another quarter of positive news about growth prospects for UK manufacturers. "
"Industry is reporting that output and orders have continued to head higher in recent months and the recovery in manufacturing globally is a big part of the story."
"It’s very encouraging that UK manufacturers have positioned themselves to capitalise on the windfall of a competitive pound and resurgent world economy."
"While growth and confidence hasn’t been knocked off track by the snap election, it is not plain sailing from here."
"There is the continuing challenge of managing input cost increases, ensuring success in attracting and retaining the skills that are in increasing demand and driving up investment in the sector."
"Whoever forms the next Government must set in stone as a matter of urgency a bold industrial strategy that will help cement the foundations for long-term growth for industry."
At Beavis Morgan, our specialist advisers to the manufacturing sector are able to assist with all aspects of business performance including ensuring that adequate measures are put in place to protect the health of your business, both now and for the future.