IPlantE News

Manufacturing output shows positive signs

5th Mar 2018

British manufacturing growth expectations are positive despite an eight-month recorded low in February, as new orders and hiring are predicted to accelerate production in the coming months.

Output index fell to the second-lowest level since the EU referendum amid restrictions on capacity curbing growth potential.

As UK manufacturers explore the possibilities of investing in automation and Industry 4.0, production forecasts face mixed signals. Uncertainty over Brexit has been blamed for the lack of growth as manufacturers wait for clarity on the future relationship with the EU before firming up investments.

According to a survey conducted by the EEF manufacturers’ association and accountancy firm BDO, factory output is set to increase by 2% this year, as two thirds of manufacturers see the EU as a positive export market, backed up by markets in Asia and North America, making it the fastest growing sector in the UK economy. Predicted output for the wider economy is at 1.5% GDP.

Making up around 10% of the UK economy, the export-led manufacturing sector is expected to flourish on the back of invigorated global markets, as overseas demand grows.

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