‘Manufacturing output hits three-year low’
NORTH West manufacturing output has fallen to its lowest level for nearly three years, according to data from the EEF and BDO.
The third quarter survey, which drew on feedback from around 35 regional businesses, found that the number of companies seeing growth in output and orders declined sharply.
A balance of 5% – those seeing growth minus firms reporting a decline – said output grew, down from 29% in the second quarter, and 15% said orders had increased, down from 27%.
Margins also came under pressure, with a balance of 24% reporting a squeeze on UK margins.
But investment intentions remain positive and employers still plan to take on staff. A balance of 23% said this was the case, particularly at small firms.
North West director of the EEF David Ost said: “The weaker global outlook precipitated by the on-going economic challenges in Europe has clearly hit home in our latest survey.
“Pockets of growth still remain in some sectors, but overall confidence appears to be draining away. The sharp drop in export balances over the past quarter is a particular concern given their importance to UK manufacturers and also our economy’s reliance on exports as a source of growth.”
Philip Storer, partner at BDO in Manchester, said: “The results of the survey paint a dark picture with weakening markets across the board.
“Inevitably Europe continues to serve as a drag on exports and even the previously buoyant emerging markets are beginning to falter. With this extremely testing global backdrop it is crucial that manufacturers remain not only lean but also nimble enough to respond to future opportunities as and when they arise. This is something that the sector has not been good at in previous recessions.”
