North East: strongest growth in manufacturing
North East manufacturing growth is the strongest of all English regions, according to a third quarter engineering outlook survey published by EEF and RSM Robson Rhodes.
Whilst all regions saw an increase in output in the past three months and remain optimistic about prospects for the next quarter, growth was strongest in the North East and West Midlands. Output balances show reported growth of +23%, largely due to the solid performance of metals and machinery. The survey also contained positive news for the Bank of England, with firms’ expectations of price rises easing. This might allay fears of the need for a further increase in interest rates.
EEF Northern Director Alan Hall welcomed the national results: “Our survey provides welcome evidence that North East manufacturers are exploiting the strength in world markets. “The renewed confidence shown by manufacturers in the last quarter has continued and it is a welcome sign that firms are signalling their intention to invest. Energy costs and metal prices are still impacting on margins, but there are signs that these pressures are beginning to ease a little. “With domestic order books flat, manufacturers are increasingly dependent on overseas markets. Whilst on the one hand this leaves us vulnerable to a downturn in the world economy, on the other the pressure of competing across the globe will help to keep a lid on inflation.
This was posted in Bdaily's Members' News section by Ruth Mitchell .
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