NW manufacturers to spearhead recovery, says EEF
THE growth of North West manufacturing export orders, particularly to emerging markets, is set to drive the UK’s economic recovery in 2011, according to trade body the EEF.
Its ‘Economic Prospects 2011’ report shows the sector outpaced the overall economy by expanding nationally by 3.8% last year.
This year 3.5% growth is forecast for manufacturing across the UK compared to 2.1% growth for the economy as a whole. In 2012 growth is forecast at 3% and 2.6% respectively.
The North West remains the UK’s biggest manufacturing region and will be at the forefront of this performance, said the EEF.
Top performers are forecast to include aerospace and automotive where the North West has a strong presence, as well as mechanical engineering and metal products.
However, the report also warns that there are some significant challenges such as the impact on manufacturers of sharp Government spending reductions, rising inflation and weak credit supply.
EEF North West Region Director David Ost said: “At the start of 2010, shell-shocked from the worst recession in 80 years, forecasters across the country were wary of predicting anything more than very modest growth. But manufacturing picked up the baton and delivered its best performance in sixteen years.
“Manufacturing now looks set to be at the heart of the rebalanced growth the economy needs with sectors most exposed to international markets likely to post the highest growth. But there are continuing risks to growth both here and abroad. To maintain momentum the government must keep its foot down on policies to accelerate growth.”
