The EEF/BDO Manufacturing Outlook report is our quarterly update on trends in UK manufacturing. Our Manufacturing Outlook survey shows a combination of an easing of growth and increased political uncertainty in some global markets, the downward drift in output balances in some sectors from the lofty heights of last year and, a weaker outlook in the construction sector supply chain mean, the outlook is slightly more subdued than it has been for some time.
Looking forward, EEF has made a small downgrade to its economic forecasts. It is now forecasting GDP growth of 1.2% in 2018 and 1.3% in 2019 (1.5% and 1.3% respectively from Q1) and manufacturing to grow by 1.9% and 0.5% (down from 2% and 0.6% respectively).
Tom Lawton, Partner and Head of BDO Manufacturing, comments:
“It is now more important than ever for the Government to not lose sight of the needs of manufacturing, or indeed the wider economy, during the continuing EU negotiations. I have no doubt that UK manufacturing will continue to be successful but the right support and trading environment will make a huge difference to manufacturers. Having more transparency from the Government will give them the confidence to invest in skills, automation and digitisation, which are so important to the future of UK manufacturing.”
Quarterly Balance Tracker
It is really promising to see the Q1 results highlight how ambitious UK manufacturers are defying Brexit uncertainties and continuing to invest in their businesses’ futures.
Source: EEF Manufacturing Outlook Survey
Download the full Q2 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.
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