The EEF/BDO Manufacturing Outlook report is our quarterly update on trends in UK manufacturing. Our Manufacturing Outlook surveys have signalled positive trading conditions across industry since the turn of the year and Q4 is no different. In the latest quarterly results we see the continued improvement in global demand boosting export performance, buoyant sales and output which are driving more investment and recruitment.
2017 has seen a clean sweep of positive balances across the main output and orders indicators – the first time this has happened since the financial crisis - UK manufacturers are ending the year with much festive cheer.
Tom Lawton, Partner and Head of BDO Manufacturing, comments:
"Manufacturers have continued their strong performance into the final quarter of 2017, ending the year with plenty of festive cheer. The sector’s performance is being driven by increasing demand from around the world, in particular Europe. The task of government is very clear: it needs to deliver a Brexit that minimises disruption to manufacturers – they are the economic engine of the UK economy”.
Quarterly Balance Tracker
On every measure response balances are both more positive than those recorded in 2017Q3.
Source: EEF Manufacturing Outlook Survey
The report confirms a resilient picture for manufacturing activity in the latter part of this year. However, while firms are confident about their own performance, the same cannot be said for their optimism about the outlook for the UK economy. UK confidence indicators have dropped for the second quarter in response to weak consumer spending and political uncertainty.
Download the full Q4 report for more information and analysis of the UK manufacturing trends, including recruitment, investment and 2018 forecast.
If you would like to discuss any of the topics raised in this report, please don't hesitate to contact Tom Lawton or your usual BDO Manufacturing partner.
Image source: Corkscrew Turbine, taken by Mike Brookes Roper at Kirkwall in Orkney, winner of the Professional category in the EEF Photography Competition 2016.