2016 finishes on a high for UK manufacturing
UK manufacturing saw a significant improvement in the final quarter of 2016. The latest survey by EEF and BDO LLP found that there was an increase in both output and orders within the industry.
The survey cites that output volumes had a substantial growth: the balance of companies reporting growth rose from -7 per cent in Q3 to +13 per cent – the first time that the overall balance has been in the positive since the second quarter of 2015. The figures are safely into the positive, too.
Order numbers also saw a great rise, up to +13 per cent from -4 per cent in Q3 – the first time in five quarters that the orders have been in the positive. The figures are expected to increase even further in Q1 of 2017 as prospects in export markets will increase.
The more positive outlook is being attributed to a range of factors including the strength and resilience of the UK market.
“This is the most upbeat reading on the state of manufacturing we’ve seen for some 18 months and signals the start of brightening conditions, which had been briefly knocked off course following the referendum,” commented EEF chief economist Lee Hopley.
The EEF/BDO Manufacturing Outlook 2016 Q4 report is available to view here
What’s instore for 2017?
Despite the improvement in performance, Brexit related risks still remain. Because of this, the EEF is still forecasting that UK manufacturing will contract in 2017. However, following these recent findings, the manufacturers’ organisation has revised its forecasts for next year. EEF now expect manufacturing to contract by -0.2 per cent in 2017, up from the -0.7 per cent previously stated.
The metal sector makes up a strong part of the industry. We are sheet metal specialists based in Leicester that have been producing high-quality metal components in the Midlands for over 25 years.
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