EEF/BDO Survey: “Manufacturing gains momentum as recovery begins, though longer term prospects remain uncertain”
Britain’s manufacturers have witnessed the delayed recovery finally arrive in the final quarter of 2016 with a much improved boost to output and orders. That’s according to a major survey released by EEF (the manufacturers’ organisation) and accountant and business advisory firm BDO LLP.
Publishing the Q4 Manufacturing Outlook Survey and revised economic forecasts, EEF points to early signs that the sector has left behind the negative effects of the low oil price and concerns about global growth and is now seeing opportunities from a resilient UK market and brightening export prospects.
The improved picture is mainly being driven by a better UK market, though the much expected boost from a weaker pound is expected to come to fruition in the next quarter.
The survey also shows the majority of manufacturing sectors and regions report more positive output balances in the past three months compared with the previous quarter. As a result, better conditions are also spurring a rebound in recruitment intentions, as well as a turnaround in investment to fulfil customer requirements and, at the same time, secure productivity gains.