Manufacturers see renewed export growth
MANUFACTURERS are increasingly upbeat about their growth prospects, forecasting rising output and export orders, two new studies showed today.
Seventy per cent of manufacturers expect orders to rise this year, with 50 per cent forecasting increasing exports to emerging economies, according to industry body EEF.
The EEF believes this should help the weak economic recovery get back on track in the coming months.
“Demand from non-EU markets has been contributing disproportionately to goods export growth through most of the recovery so far,” said its report.
“Increasing net trade is a key pillar of rebalancing the economy, shifting away from growth based on household and government spending towards a greater reliance on exporting and investment.”
The Confederation of British Industry’s (CBI) study of small- and medium-sized manufacturers also pointed to a healthy year, with sentiment turning positive for the first time since mid-2011. A net 27 per cent expect orders to rise in the next three months, the quarterly survey showed.
The CBI’s study shows investment intentions and employment levels rising, as firms expect production and exports to pick up.
A net balance of 22 per cent of SMEs were optimistic about the wider business situation in April, up from minus 20 per cent in January, while a balance of 13 per cent expect to increase spending on plant an machinery over the next year, up from zero in January.
Hiring intentions for the next three months also rose – a balance of 16 per cent now expect to increase headcount, up from four per cent three months ago.