Manufacturers to lead a mild UK recovery

Tim Wallace
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MANUFACTURING, media and telecoms will lead the UK’s economic recovery, while construction and business services will struggle to keep up, a study out today claims.

The weak pound will support manufacturing by keeping the sector internationally competitive, which should see business failures keep falling into 2013, according to the study from accountancy and law firm BDO and the Centre for Economics and Business Research.

The strong demand for digital solutions “is creating a climate of investment and growth” in technology and telecoms, as other sectors look to it for efficiency gains and cost-cutting support.

However, the overall growth picture remains weak, with other industries set to suffer – in particular, increasing numbers of retailers are set to go bust as high unemployment and continued government spending restraint hold back consumer spending.