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
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.
In partnership with: