British manufacturer’s enjoying buoyant conditions, notes survey

According to a survey published by the manufacturers’ organisation, EEF, and accountancy and business advisory firm BDO, manufacturer’s in Britain are experiencing buoyant conditions as a result of the strengthening export markets.

In the Q3 Manufacturing Outlook survey, respondents stated that despite the continued political upheaval and uncertainty within the UK, they have managed to take advantage of the upswings in the Eurozone and global trade.

This trade boost has also given rise to increased confidence in individual firm performance, which translates to a positive picture for both recruitment and investment intentions in the near future. However, this confidence level does not ring true for the manufacturers outlook of the UK’s economy. Confidence indicators for this have dropped since the second quarter, which has been attributed to weal consumer spending and political uncertainty. Furthermore, recent sterling depreciation is likely to lead to price increases in the coming months.

“Manufacturers appear to have taken the recent political upheaval in their stride and are taking advantage of growing world markets to make hay while the sun shines. This period is likely to be the peak, however, and we are likely to see a more stable picture in the coming months rather than any further significant acceleration,” commented Lee Hopley, chief economist at EEF. “There is little doubt that Brexit is likely to weigh on sentiment over the next twelve months with uncertainty over the UK’s terms of exit. As such, it is vital the government sends a signal to industry and investors in the UK and overseas that it is doing everything in its power to get growth of the UK economy back on the agenda. This must include a bold and ambitious cross-government industrial strategy.”

“Despite the economic and political uncertainties, manufacturers’ continue to be a force to be reckoned with, delivering a strong performance as well as increasing both investment and employment plans to make the most of the strengthening export opportunities available to them,” added Tom Lawton, partner and head, BDO Manufacturing. “However, manufacturers’ confidence about the UK economy has continued to fall for the second quarter running. With growing opportunities around the world, particularly the Eurozone, manufacturers’ need stability and certainty in government policy (including Brexit) to provide the right environment for them to commit to the significant capital and research investment required to support continued growth.”

This survey included 416 responses and was performed in August.