Yet despite the strong demand, manufacturers have seen profit margins deteriorate, as firms have not been able to pass higher costs on to customers.
Over the last six months, while the economy as a whole has stagnated, manufacturing grew by 2.3 per cent. According to the latest quarterly Manufacturing Outlook survey by the Engineering Employers’ Federation (EEF), a balance of 28 per cent of manufacturers have seen output rise in the last three months, up from 25 per cent in the EEF’s Q1 survey. A balance of 30 per cent of firms also reported a rise in new orders, up from 20 per cent in Q1. But the sticking point for manufactures remains soaring costs. Over the last three months, a balance of 13 per cent of companies saw domestic margins deteriorate, and four per cent saw a similar picture on export margins. “Manufacturing may be heading for more turbulent times. However, cutting through some of the noise from temporary factors over the past few months, our survey continues to show underlying strength in output and orders,” says EEF chief economist Lee Hopley. “Providing buoyant demand from overseas markets holds firm, we should see growth maintained through the rest of the year.” The EEF survey also showed strong levels of new job creation, with a balance of 24 per cent of employers looking to hire. This backs official data, which last month showed a record for manufacturing vacancies. Picture source
We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept”, you consent to the use of ALL the cookies.
This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.