EEF dispels gloom, with output and orders rising
British manufacturing is holding up surprisingly well, according to a survey by the manufacturers' organisation EEF.
The latest EEF business trends study shows output and orders growing in the past three months, driven by exports.
Of companies surveyed, 18 per cent plan to increase their capital investment over the coming year, unchanged from the previous quarter, while 20 per cent have increased recruitment, continuing a strong hiring trend that began in the second quarter of 2010. Car makers and the rest of the transport sector reported healthy export balances. Mechanical equipment output and orders continued to hold up well too. The EEF forecasts growth for the manufacturing sector as a whole of 2.8 per cent in 2011, with positive output expectations across all regions.
Lee Hopley, the EEF's chief economist, said: "Manufacturers have bucked other recent negative indicators, holding out hope that the recovery has not yet run out of steam. Across much of the sector companies are still busy and orders are holding up, particularly from overseas markets."
The EEF's findings contradict last week's gloomy Markit/CIPS survey, which pointed to a contraction in UK manufacturing in August.
The survey does indicate some areas of fragility, with metals and electronics manufacturers experiencing weaker orders. There is also a divergence according to size, with smaller manufacturers more cautious on prospects for expansion.
Tom Lawton, the head of manufacturing at the accounting firm BDO, which compiles the Business Trends report in conjunction with EEF, said: "We should not forget how important SMEs are for a strong economy – and we should ensure our smaller manufacturing companies are given the support they require to thrive and continue to be an active part of this sector."
- 1 Woman 'suffocates newborn baby in plastic bag and puts it in her desk minutes after giving birth'
- 2 I've been called an abusive and dangerous parent, when all I did was listen to my transgender child
- 3 Company breaks open Apple Watch to discover what it says is 'planned obsolescence'
- 4 Teaching profession headed for crisis as numbers continue to drop and working lives become 'unbearable'
- 5 Chinese student carries disabled friend to school every day for three years
Nepal earthquake in pictures: Photos show devastation caused by 7.8 magnitude earthquake
Royal baby: Live updates as superbug closes ward at St Mary's Hospital in London where Duchess of Cambridge is due to give birth
Nepal earthquake: Rescuers forced to dig with their bare hands in search for survivors as images show damage to historic buildings
Ed Miliband and Boris Johnson in angry clash live on BBC's Andrew Marr Show
Bali Nine executions: British grandmother on death row in Indonesia Lindsay Sandiford says she 'just wants to get it over with'
General Election 2015: Chuka Umunna on the benefits of immigration, humility – and his leader Ed Miliband
The sickening truth about food banks that the Tories don't want you to know
Migrant boat disaster: Ukip candidate mocks victims in sickening Twitter post
Nigel Farage wants the BBC to stop making programmes like Doctor Who, Strictly Come Dancing, and Top Gear
Global warming: Scientists say temperatures could rise by 6C by 2100 and call for action ahead of UN meeting in Paris
General Election 2015: Britain would become a 'communist dictatorship' under Ed Miliband and Nicola Sturgeon, claims wife of Michael Gove
iJobs Money & Business
£24000 - £26000 per annum + benefits : Ashdown Group: A highly successful, glo...
£50000 - £55000 per annum: Ashdown Group: Business Analyst - Financial Service...
£18000 - £23000 per annum + OTE £45K: SThree: At SThree, we like to be differe...
£20000 - £25000 per annum + competitive: SThree: Did you know? SThree is the o...