UK Manufacturers Enjoy Strong Growth

By Stewart Douglas

The UK manufacturing sector has enjoyed a decade-high performance, recording unparalleled growth in recent times according to a report released today.

The report, released by the EEF business group, highlighted that the number of orders and output at manufacturing businesses nationwide had increased over July, August and September, reflecting ’sustained growth’ in the industry.

The figures have reached over a twelve-year high, since the first quarter of 1995, reflecting the robustness of the UK manufacturing sector.  However, with markets tightening and investor confidence approach new lows, the outlook over the next few months may not be so positive for manufacturing.

With interest rates in the UK looking fairly stable, with the likelihood of just one more rise through the course of this year, manufacturing has been allowed to grow and flourish as demand for quality produce returns.

Meanwhile, the favourable currency valuation on the world markets means that UK exports remain competitive on a global scale, without pricing imports beyond the reach of businesses.

However, some analysts have suggested the situation in the US housing market could lead to a tightening domestic credit industry, culminating in a lack of growth for capital-intensive industries in the long run.

The EEF group chief economist, Steve Radley, suggested that the current market climates are actively conducive to manufacturing growth, despite the threats facing the UK economy from overseas, and internally.

“Manufacturers are now enjoying a sustained period of growth and reaping the rewards of increasing their investment in skills and innovation. Long gone are the days when a strong currency and increases in interest rates would have stopped companies in their tracks.”

The EEF survey, covering 866 companies across the UK, also indicated that growth would expand overall through the course of this year and next, from their comprehensive findings.