Manufacturing firms keep foot on pedal

Manufacturing firms are ignoring the ongoing political uncertainty gripping the UK by pressing ahead with investment and recruitment, a new report today shows.

Research by the EEF among almost 400 manufacturers found their orders books and output were “healthy”. They reportedacontinuedimprovement in global demand and a pick-up in the UK market, with the EU in particular offering good prospects for growth.

The EEF said the importance of European markets showed it was essential the government seeks a Brexit agreement which maintains trading arrangements.

Lee Hopley, EEF chief economist, said: “Manufacturing activity stepped up a gear through 2017, providing industry with some decent momentum coming into this year.

“The importance of a buoyant global economy to exportfocused manufacturing sectors is again reinforced, with growing overseas demand encouraging international manufacturers to ramp up their investment which in turn is spurring particularly strong activity in UK capital goods sectors.

“While this will help top line growth in UK industry and the wider economy, it’s also important that the global race to increase investment and adopt new technology is not one in which the UK is left behind.

Tom Lawton, of business adviser BDO LLP, which helped with the study, added: “Throughout 2017, the UK manufacturing sector proved itself to be remarkably resilient and delivered a strong overall performance.” 0 Lee Hopley – activity stepped up gear in 2017