Manufacturers report growth in orders

NORTH West manufacturers are maintaining healthy growth despite the uncertain economic outlook, according to a new survey.

Research carried out by the Engineering Employers’ Federation with accountants BDO shows that a balance of 31% of those surveyed in the region reported an increase in output and a balance of 27% reported a grown order book over the past three months.

The survey showed that exports remain the main driver behind growth, with the gap between overseas and domestic markets still evident.

However, as the economic outlook has become more uncertain, a divergence in views of future expectations has opened up. A small number of sectors, including metals and electronics, have seen weaker orders intake over the past three months, with corresponding concerns about output expansion evident in the next three months.

EEF North West’s regional director, David Ost said: “Manufacturers have bucked other recent negative indicators, holding out hope that the recovery has not yet run out of steam.

“Across much of the sector companies are still busy and orders are holding up, particularly from overseas markets.

“However, conditions have moved on from the broad-based recovery seen over the past 18 months to a more mixed picture, especially around the short term outlook.

“The growing challenges in the global economic environment, in particular, are casting a shadow over expectations and seem to be giving some companies pause for thought when it comes to investing and recruiting.”

Philip Storer, manufacturing partner at BDO in Manchester, said: “Despite the economic storm clouds looming in the Eurozone, the US and the UK, this was a strong survey for the manufacturing sector.

“However, it is interesting to note the stark differences in expectations between small and large companies, with smaller companies seeming considerably less secure about the future.”