Manufacturers’ confidence halves
5 Jan 2015
Confidence among British manufacturers has dropped to nearly half the level it was at the start of 2014, with exporters concerned about the health of key markets in Europe and the Middle East.
A survey of company executives in the manufacturing and engineering sectors has found that those expecting UK economic conditions to improve has almost halved from 70% at the start of 2014 to 37% this year.
At the same time the survey, run by trade body EEF and business bank Aldermore, found that the number of executives expecting conditions in the UK to deteriorate has tripled, rising from 5% in 2014 to 17% this year.
Recovery is by no means guaranteed
EEF chief executive Terry Scuoler
Expectations about sales in the UK’s biggest export market, Europe, has slumped to just under half of manufacturers (49%) expecting to see an increase in 2015.
There are also concerns about geo-political risk in the Middle East, but manufacturing bosses are more hopeful about sales to other regions such as the Americas and Asia.
“Manufacturers’ confidence at the beginning of last year was very high - one year on and, while still positive, it has very evidently eased back,” said EEF chief executive Terry Scuoler.
“The realities of 2014 have taken the edge off future forecasts and what we are now seeing as we head into 2015 is a far more muted outlook, tempered by a backdrop of difficulties in the EU and wider geo-political concerns.”
Sculoer warned that UK political uncertainty with a general election this year could further harm industry, and that it was vital that disruption was “kept to a minimum”.
“Recovery is by no means guaranteed and we would urge party leaders – and the next Government of whatever shade - to remain focussed on delivering a fully balanced, stable economy where manufacturing is enabled to expand and grow,” he said.
