Manufacturing mounted a strong performance in 2006 with output and order books expanding and
investment plans remaining positive throughout the year.
Overseas markets were the main source of new orders in 2006, with exports expanding despite the pound’s strength, though margins remained under pressure.
Manufacturers are somewhat less optimistic about the future, reflecting a potentially a less upbeat outlook for the world economy, particularly the United States. However, provided that the eurozone recovery remains on track, we expect manufacturing to continue expanding this year, albeit at a slower pace.
EEF's submission to the Treasury covers these issues as well as our recommendations for the Comprehensive Spending Review, skills, energy, trade and innovation. It can be downloaded in full.