The manufacturers’ organization EEF and accountants BDO have found that 33% of British manufacturers have seen an increase in the last three months. This is the highest that they have seen since 2010, and is up 12% in the last quarter. The highest number of orders came from UK-made electrical equipment and from motor vehicles.
Manufacturers expect the orders from both the domestic and export markets to increase by 24% and 19% respectively in the next quarter. EEF chief economist Lee Hopley said, “Industry’s prospects have brightened considerably in the past few months and it’s particularly positive that this improving trend can be seen across all manufacturing sectors. Here is growing confidence that improving trading conditions will continue into the final months of this year and then accelerate through the gears in 2014.”
He continued, “However as companies become more confident about their growth prospects, we need to see that translate into commitments to invest in new capacity and for this to take place in the UK.”
The head of manufacturing at BDO added to these comments when he said, “UK manufacturers across all sectors and throughout our supply chain are feeling the benefits of an impressive return to confidence. But this is not ‘manufacturing sector – job done’ for the Government. We must use it as a strong foundation to ensure the sector acts as an engine of change for the UK economy.”
As Don Williams, the national head of retail and wholesale at BDO, said, “This has been a strong month. This time last year, the feel-good factor came from the Olympics but this year it is being prompted by the change in tone in the media and consumers less fearful of imminent restructurings and redundancy.”