Survey shows strong manufacturing conditions

The third quarter of the year was a healthy one for UK manufacturing, according to the Engineering Outlook survey from EEF. The survey was conducted during August, with 868 companies responding from across the spectrum of manufacturing industry. Output and order balances reached their highest level since 1995 – both reaching +30% – while domestic orders now outweigh export orders the first time since 2002, said EEF. The balance of companies expecting to increase output in Q4 is 35%, with mechanical engineering, electronics and electrical equipment even higher at +44% each. EEF chief economist Steve Radley said: “Manufacturers are enjoying a sustained period of growth and reaping the rewards of increasing their investment in skills and innovation. However, the current turbulence in the financial markets and a more significant slowdown in the US could weaken the outlook.”