EEF, the organisation representing manufacturers in
Yorkshire
and throughout the
UK
, reports a confident outlook from its members in its first business trends survey of 2007.
In the final quarter of 2006 there had been some tailing off of the optimism that had characterised manufacturing for much of the year. In the first quarter this tailing off has continued. While the picture on output and orders continues, like the rest of the UK, to be positive, there was as predicted a dip in orders compared with the previous quarter, and a large dip in output. At the end of 2006 Yorkshire had been one of the most positive regions in the country for output.
Yorkshire is also one of only three regions to have seen job cuts. The percentage of companies able to increase export prices has gone down, and cash flow levels have deteriorated.
Nonetheless looking ahead, there is a good deal of optimism that things will pick up. EU and non-EU markets look set to sustain order books, and the recent good performance of the UK economy should help. However there is little expectation that further increases in export prices will be achieved. Export margins deteriorated in the first quarter across the UK, indicating that movements in the dollar exchange rate towards the end of 2006 may be having an effect.
David Wilson, Head of External Affairs for EEF in Yorkshire said:” We were nervous at the end of 2006 about the prospects for this year, and we were right to expect an uncertain start to 2007. However, confidence seems to be growing, and I am hopeful that this will be another good year for Yorkshire manufacturing. That of course presupposes that the Chancellor will be gentle with us in his forthcoming budget—this would not be the right time to impose further costs on manufacturers.”