UK’s factories confident of fast growth
BRITAIN’S manufacturers remain confident that they can drive the economy forwards, leading industry group EEF revealed today.
Despite the sector accounting for only 13 per cent of GDP, manufacturing has contributed one third of growth since the recovery began, a report from EEF said.
And a positive balance of 27 per cent of factories are planning for continued output growth, the widespread survey shows.
“Recent data appears to indicate that manufacturing may be heading for more turbulent times,” said EEF economist Lee Hopley.
“However, cutting through some of the noise from temporary factors over the past few months our survey continues to show underlying strength in output and orders.”
While the economy as a whole supposedly stagnated over the final quarter of last year and first quarter of 2011, manufacturing grew by 2.3 per cent.
Output was bolstered by one per cent in the first three months of the year, EEF said, culminating in the strongest 18-month period for British factories since 1989.
“Providing buoyant demand from overseas markets holds firm, we should see growth maintained through the rest of the year,” Hopley added.
The number of manufacturers reporting growth in exports “remained near record highs” in the opening months of 2011; 28 per cent more respondents said exports had increased, than those reporting slower demand.
High input and commodity prices, however, have “become tougher to manage,” Hopley said.