–Exports Get Boost From Strong Demand In BRICs
–But Slight Softening In Optimism Seen Looking Ahead 2011
LONDON (MNI) – The UK manufacturing sector saw continued strong
trading conditions into the fourth quarter of 2010, according to the
latest Engineering Employers’ Federation survey.
Indicators for output remain at record levels for the third quarter
in succession, according to the fourth quarter “Manufacturing Outlook”
survey published today by EEF, the manufacturers’ organisation and BDO
LLP.
The EEF said that the strong performance continues to be broad –
based across all sectors and regions and has been underpinned by the
robust demand in the BRICs.
Manufacturers have also been recruiting and making some new
investments in response to the stronger-than-expected recovery in
production. But the EEF said that there is still “some caution around
making significant investments for long-term growth”.
Of more concern, the EEF notes a “slightly softening in optimism”
especially in the outlook for domestic orders but the EEF forecasts that
engineering and manufacturing will continue to outperform the rest of
the UK economy in 2011.
EEF Chief Economist Lee Hopley said:
“Manufacturers are ending the year on a high and should enter 2011
on a strong footing. The survey has shown record responses on output and
orders for much of this year and, if this continues, we should see
exports and investment delivering better balanced growth across the
economy.
“However, the backdrop to an ongoing recovery through 2011 remains
an uncertain one. A number of risks remain firmly on companies’ radar,
including the potential for the upturn to lose momentum in the UK’s
major markets. But the strong bounce back has also brought challenges,
with some manufacturers’ struggling to get the skills they need and
facing rising costs.”
The latest balances for output and new orders are around record
levels, the EEF said.
–London newsroom: 4420 7634 1624; email: ukeditorial@marketnews.com
[TOPICS: M$B$$$,MABDA$,MABDS$,MT$$$$]
