East Mids manufacturers enjoying ‘very positive conditions’, says report

Manufacturers in the East Midlands are “continuing to enjoy very positive conditions” across most economic indicators according to a new survey by EEF, the manufacturing organisation and accountancy and business advisory firm BDO.

The EEF/BDO Manufacturing Outlook survey for the third quarter shows that output and orders have picked up “very strongly” from the last quarter, posting balances of +33% and +30% respectively. Both of these are forecast to pick up further in the second half of the year.

In particular, export orders (+20%) are very positive, reflecting the national picture of a sector benefitting from both a pick-up in the Eurozone and other growing markets around the world. This picture is expected to remain stable in the coming months.

This strong performance has boosted business confidence amongst firms in the East Midlands, with demand for skills pushing recruitment intentions to a very positive balance of +30%, whilst investment intentions have surged in the last quarter with a balance of +48% of firms planning to increase investment. Both these indicators are strongest of any UK region.

Charlotte Horobin, region director for EEF in the East Midlands, said: “Manufacturers appear to have taken the recent political upheaval in their stride and are taking advantage of growing world markets to make hay while the sun shines. This period is likely to be the peak, however, and we are likely to see a more stable picture in the coming months rather than any further significant acceleration.

“There is little doubt that Brexit is likely to weigh on sentiment over the next twelve months with uncertainty over the UK’s terms of exit. As such, it is vital the Government sends a signal to industry and investors in the UK and overseas that it is doing everything in its power to get growth of the UK economy back on the agenda. This must include a bold and ambitious cross -government industrial strategy.”