Manufacturers across the East Midlands are continuing to power on, reporting positives in outputs and orders according to the latest quarterly Manufacturing Outlook survey by EEF, the manufacturers’ organisation, and accountancy and business advisory firm, BDO LLP.
The data, published today, reveals that business confidence in UK manufacturing has firmly taken root, with this quarter’s findings showing that manufacturers’ confident start to 2014 was sustained in the second quarter.
Despite short term volatility in certain sectors, including companies exposed to public spending cuts, output and order balances in the region remained positive at +9% and +10% respectively in Q2.
Following a record start to the year for East Midlands manufacturers in Q1, employment levels have soared during the last three months with a balance of 36% of companies increasing recruitment. This skills boost comes ahead of the increased activity expected in Q3, where a balance of 30% of manufacturers forecast further growth in their order books.
One area of caution is in exports where demand weakness in key markets and the appreciation of sterling is adding to uncertainty, resulting in a small decline in the number of East Midlands manufacturers confident of achieving export growth in the third quarter of the year.
UK-wide, the sector is performing well with strong trading conditions evident in all sectors. EEF is now forecasting 3.6% manufacturing growth, a substantial upgrade from the 2.7% forecast at the beginning of the year.
Richard Halstead, Midlands Region Director at EEF, says: “There is a palpable sense of mounting confidence amongst manufacturers. Another set of positive results is a further boost for businesses emerging from the shadow of the recession and to the local economy and job market. Manufacturers in this region will also have an important role to play in helping to sustain broad based growth across the UK.”
Rick Wilson, partner at BDO LLP in the East Midlands, says: “Government manufacturing policy is creating an environment in which East Midlands manufacturers are comfortable enough to commit to investment in recruitment. This is a positive indicator for the rest of the year. What is now needed is for this success to be replicated abroad. We would encourage the Government to introduce more supportive measures for exports, especially given the tentative nature of economic recovery in Europe.”
