The manufacturing industry remains strong thanks to a weaker pound and improving global economy, according to a new survey.
Compiled by manufacturers’ organisation, EEF, and accountancy firm BDO, the Q2 Manufacturing Outlook Report showed how Brexit uncertainty was not hindering trade as much as previously expected.
Released earlier this week, the report said that “a combination of the weaker exchange rate and enduring healthy demand conditions should see exports continue on the up”, and that demand was “buoyant” in the industry.
Factory output is now expected to reach its fastest growth in three years, whilst higher import prices should encourage British homes to purchase home-made goods rather than imported goods.
EEF chief economist, Lee Hopley, said: “Industry is reporting that output and orders have continued to head higher in recent months and the recovery in manufacturing globally is a big part of the story.
“It’s very encouraging that UK manufacturers have positioned themselves to capitalise on the windfall of a competitive pound and resurgent world economy.”
With the upcoming general election and Brexit deal finalisation, however, the report does claim that an industrial strategy is needed.
“It is not plain-sailing from here,” Hopley continued.
“There is the continuing challenge of managing input cost increases, ensuring success in attracting and retaining the skills that are in increasing demand and driving up investment in the sector.”