Manufacturers expect sector to grow faster than the rest of UK
A STRONG start to the year for British manufacturers means the sector is on track to outstrip the economy generally this year, according to a major industry group’s most recent survey.
The outlook for orders in the UK’s factories is buoyant, with 30 per cent more firms expecting an increase in UK transactions and 33 per cent expecting growth from exports, the highest since at least 2000 when the survey began.
“This is the most positive set of indicators we have seen for some time, demonstrating that we’ve not just turned the corner, we’re actively heading down the right road,” said Lee Hopley, chief economist at the EEF.
Investment intentions are now at the highest in the history of the survey: 34 per cent more companies expect to increase capital spending in the next year than cut back, though investment is still below pre-crisis levels.
Manufacturers are also reporting robust employment expectations, with a net balance of 30 per cent of firms planning to take on staff.
EEF expects manufacturing growth of 2.7 per cent this year, against GDP growth of 2.6 per cent.