UK manufacturers are expecting much greater growth in 2014 than was the case earlier in the year, according to figures from manufacturers’ organisation EEF.
In the previous quarterly survey, manufacturers were predicting annual growth of 2.7% in 2014 – but in Q2 this had risen to 3.6%, an increase of a third.
EEF chief economist Lee Hopley said: “Given that manufacturers’ investment plans have been hovering near record highs for several quarters, industry has likely been a significant contributor to the recent recovery in business investment.
“There is, however, some uncertainty about the net trade component of better balanced growth.”
She added that EEF are seeing substantial activity among manufacturers looking to export markets to boost their profits.
But with uncertainty in some overseas economies, she pointed out that export revenues are still far from certain.
Forward-looking output is now at its highest level since 2007, driven mainly by domestic demand but with upward expectations from those approaching export opportunities as mentioned.
Interestingly, despite the widespread perception of British manufacturing as being beleaguered, the industry’s expectations are now outpacing theUKeconomy as a whole.
GDP growth has been upgraded from 2.6% to 3%, leading EEF to suggest that the manufacturing sector will underpin broader economic recovery.