LONDON (MNI) – UK manufacturing output and orders continued to grow
in the last three months, with exports still the main driver, according
to the latest quarterly survey jointly published by the manufacturing
organisation EEF and BDO LLP.
The EEF/BDO Q3 Manufacturing Outlook survey showed that there was a
positive net balance of 27% reporting output up rather than down as
against +28% in Q2. The balance for new orders was at 23% compared
with 30% previously.
The figures were roughly in line with last month’s expectations.
The survey also reported that the balance on export orders was 23% as
against 28% in Q2. The balance on domestic orders registered a 12%
growth balance compared with 19% in Q2.
Expectations remain positive for the next 3 months, with output and
orders forecasts on a par with those seen in this quarter’s survey
results. That said, employment intentions are weakening, suggesting
that economic uncertainty is leading firms to review their hiring plans.
For the first time since the recession ended 18 months ago, the
survey also noted a divergence in views regarding recent trading
conditions and future expectations. The survey showed that metals and
electronics orders balances have weakened significantly compared with
the previous quarter. Motor vehicles and other transport reported
positive export balances, while output and orders continued to hold up
for mechanical equipment output.
Sentiment was weaker for smaller firms.
Tom Lawton, Head of Manufacturing at BDO LLP, said:
“The economic turmoil in some industrialised economies is a cause
for concern amongst all manufacturers. In particular, companies will be
worried about how their order books will look in the coming months, as
well as their prospects of recovering debt on sales already made. But
whereas a large company may be in a better position to offset losses, to
a smaller company the loss of an important customer can be a business
critical event. In addition, smaller companies may feel less confident
about the future due to the relatively short-term nature of their order
profiles, giving them less visibility over future orders”.
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! 2009 ! 2010 ! 2011
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! Q4 ! Q1 Q2 Q3 Q4 ! Q1 Q2 Q3
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Total output ! -3 ! 8 30 33 33 ! 25 28 27
UK new orders ! -6 ! -4 24 20 22 ! 14 19 12
Export new orders ! -5 ! 3 23 30 26 ! 25 28 23
Total new orders ! -1 ! 2 34 35 32 ! 20 30 23
Employment ! -11 ! -6 9 17 23 ! 29 24 20
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–London newsroom: +44 207 862 7492; email: ukeditorial@marketnews.com
[TOPICS: MABDS$,M$B$$$,MT$$$$]
