Commenting on today’s IoP data, Ms Lee Hopley, Chief Economist at EEF, the manufacturers’ organisation, said:
“The fall shouldn’t be of concern, as other business surveys point to positive underlying momentum in manufacturing. However, there is a strong degree of sectoral divergence which is very much an oil and gas story.
“Whereas those sectors in the supply chain – such as mechanical and electrical equipment sectors – have seen output fall as investment projects have been cancelled or postponed. Those which use oil products as an input to production such as chemicals and rubber and plastics have enjoyed a boost.
“Overall we’re still expecting robust growth in manufacturing this year as global uncertainty levels out and expectations among most manufacturers remain strong.”
EEF is currently projecting 1.7% growth this year in manufacturing