Survey finds UK manufacturers have seen a spike in orders post-Brexit

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28th March 2017 11:22 - Industrial

Survey finds UK manufacturers have seen a spike in orders post-Brexit: According to a recent survey, factories in Britain are growing at the fastest rate in more than three years. This has been attributed to the decreasing value of the pound following the vote to leave the European Union, as well as a recovery in core European markets.

The survey was conducted by manufacturing lobby group EEF and consultancy BDO and contributed to signs that British factories are going through a period of growth, which Brexit supporters said would be one of the early benefits of leaving the European Union.

Although, many economists have said that the revival within the manufacturing industry is not likely to cancel out the effect on the economy of slower consumer spending.

The EEF and BDO’s survey also revealed that manufacturers’ output increased quickly, with the number of manufacturing companies reporting a growth, increasing to 31 per cent in the first quarter of 2016. This figure is the highest percentage since Q3 of 2013, which manufacturing firms were asked the same thing.

The number of manufacturing companies who are anticipating growth in the second quarter of 2017 increased to 33 per cent.

Just 1 in 5 manufacturing companies said that they had not yet witnessed any pick-up in foreign markets, whereas investment, business confidence and employment intentions all improved.

The survey found that prices are likely to increase further; with manufacturers looking to ease pressure on their profit margins as a result of the sterling’s declining value, which ultimately makes their exports cheaper but the imports they use more expensive.

The EEF has increased its forecast for growth in the manufacturing sector by 1 per cent for this year, up from a previous estimate of 0.2 per cent contraction. The EEF also raised its forecast for British economic growth as a while to 1.8 per cent growth, in comparison with a prior forecast of 1.3 per cent.

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