British manufacturing leading recovery with three-year peak

BRITAIN’S manufacturers have reported their strongest output figures in three years, a poll out today shows.

A survey of 290 firms by manufacturer’s organisation EEF and accountancy firm BDO revealed 32 per cent of companies reported increased output, up from 12 per cent in the last quarter and the highest since the beginning of 2010.

Orders balances also increased significantly, up to 27 per cent from seven per cent in the last quarter.

“A domestic market at its strongest for almost three years, backed by export sales at a two year high, means UK manufacturers across all sectors and throughout the supply chain are feeling the benefits of an impressive return to confidence,” said BDO head of manufacturing Tom Lawton.

Further signs of a UK recovery came from a separate BDO retail survey, which showed August high street sales jumped 3.5 per cent compared to the same month last year – the highest rise in six months.

The figures show non-fashion and homeware sales growing robustly over the 12-month period, up by 8.7 and 20.2 per cent respectively.

Homeware sales are now back up to the strongest level recorded since mid-2007. However fashion sales were 0.3 per cent lower than in August 2012.