Buoyancy in Manufacturing Sector Shows BDO Survey Report
The manufacturing sector in UK is lately showing a buoyancy trend in trading conditions with increased demand from overseas market as per a survey conducted by BDO and EEF, a manufacturer’s organization.
Manufacturing Outlook report for the third quarter published by BDO/EEF has asserted that the recovery that started by the end of 2009 would be carried forward to the second quarter in continuation.
New order balances and the output for the last three months were registered at 35 and 33 percent respectively. Indication is that manufacturing output growth may continue till the next quarter. Export markets reaching above 30 percent is largely attributed for this growth. The domestic order balance was somewhat weak but 20% plus is still a better average over long term standing.
Lee Hopeley, EEF Chief Economist feels that the manufacturers are highly benefitted by the overseas market growth and the upswing has been visible in employment sector and investment is also giving signs of recovery much earlier. For the first time, the investment balance is +7%. The employment percentage has also risen by 17% in the industry sector.
BDO ‘s Chief of manufacturing, Tom Lawton said that two key indicators namely employment and investment, which were not showing encouraging signs, have taken up an optimistic path but he very much wished that manufacturing sector must also compete in the area of research and development , innovations , customer service and must cope with the speed of emerging trends.
The survey has further shown that there would be an increase in output by 27% and in order balance by 22% in the next quarter. EEF’s forecast has predicted growth in economy by 1.5 and 2.1% while manufacturing growth will be 3.7% and 3.2%in 2010 and 2011.