EEF/BDO Manufacturing Outlook Q2 2017

PUBLISHED 05 Jun 2017


British manufacturers are continuing to enjoy a surge in performance on the back of a synchronised upswing in global markets according to the Q2 2017 EEF/BDO Manufacturing Outlook.

Outlook-2017-Q2-indicator-chart 

Key findings

  • Positive trends continue across UK manufacturing

  • Exports continue to be boosted by healthy global demand and weak Sterling

  • Output and orders balances remain healthy across all sectors

  • Recruitment and employment intentions remain strong

  • Forecasts for manufacturing growth in 2017 and 2018 revised upwards

Outlook-2017-Q2-regional-trends 

In contrast to recent years, positive output balances were reported across all sectors. However, those in the capital goods sector are performing especially well as global manufacturing intentions have increased. A good pipeline of orders across the industry is pushing up demand for new employees and recruitment intentions soared to the highest level in three years, whilst investment intentions were in positive territory for the third quarter in a row.

However, the current sweet spot for the sector cannot be guaranteed given the uncertainty ahead, in particular the likely continued squeeze on household incomes and the possibility of no deal on Brexit which could damage trade.

Lee-Outlooke-2017-Q2-quote 

Tom-Lawton-Outlook-2017-Q2-quote

 

In partnership with:

BDO
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