Manufacturers continue to prosper, says EEF
MANUFACTURERS in the North West are continuing to take advantage of export-led demand, according to a survey by the Engineering Employers’ Federation (EEF).
Its 2011 Manufacturing Outlook survey, in association with accountancy firm BDO, has recorded growth in output and orders in the last three months.
The latest figures follow a run of positive manufacturing data, helped by the cheaper pound, and mark six consecutive quarters of growth.
The EEF said the growth was being driven by the aerospace industry, which had the strongest national order balance in the last three quarters, and the automotive sector.
In the last three months the balances on new orders and output were 36% and 33%, up from 25% and 23% respectively. Whilst the prospects for the next three months have eased with both balances falling to +19% this is above the long term average, said the EEF.
According to the trade body manufacturing grew by 2.3% across the country in the last six months, a time when the economy as a whole stagnated. The sector accounts for around 13% of the economy but has been responsible for one third of economic growth.
But the EEF stressed that significant increases in raw material and energy costs are beginning to impact on manufacturers’ profits.
David Ost, EEF North West region director, said: “Recent data appears to indicate that manufacturing may be heading for more turbulent times. 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. Providing buoyant demand from overseas markets holds firm, we should see growth maintained through the rest of the year.
“However, the flipside of strong global demand has been upward pressure on a range of input and commodity prices, which has become tougher to manage. But manufacturers’ plans to invest for future growth suggest there is some confidence that they will be able to navigate this and other challenges in the months ahead.”
