Manufacturing growth forecasts halved amid market turmoil

Kasmira Jefford
Follow Kasmira
MANUFACTURING growth is expected to be slower than expected this year, as the recent turmoil in Europe and China's economic slowdown threaten to dampen demand for orders at home and abroad.

EEF, the manufacturers' organisation, and law firm DLA Piper have halved their 2015 growth forecast to 0.7 per cent in the third quarter from 1.5 per cent previously, according to their latest quarterly Manufacturing Outlook survey released today.

The balance of manufacturers reporting output growth has dropped to its lowest level since the fourth quarter of 2009 which, at minus two per cent, contrasts sharply with manufacturers' expectations.

Export orders in particular have suffered, hitting a six-year low due to problems in Europe over the summer and the slowdown in emerging markets. At the same time domestic demand is not making up for falling overseas demand, the report said.