North West manufacturers power ahead as national growth forecast upgraded to 3.6%

Manufacturers in the North West are continuing to power on, reporting positives across every key indicator of business health, according to the latest quarterly Manufacturing Outlook survey by EEF, the manufacturers’ organisation, and accountancy and business advisory firm, BDO LLP.

The data, published today, reveals that business confidence in the North West has firmly taken root, with this quarter’s findings showing that manufacturers’ strong start to the year was sustained in the second quarter.

Output, orders and employment are all up on balance, with the North West only pipped to the post by the Yorkshire and Humber region for new orders.

However, the North West led the way on investment intentions, outpacing every other part of the country with a balance of 57% of manufacturers planning to invest during the year ahead.

And as the region’s manufacturers motor into the second half of the year, there are more positives on the horizon. On balance, 55% expect to increase output, 39% anticipate a boost in orders and 37% intend to take on staff.

The one area of caution is in exports where demand weakness in key markets and the appreciation of sterling is adding to uncertainty, resulting in a small decline in the number of North West manufacturers confident of achieving export growth in the third quarter of the year.

The strong results for the region mirror the national picture and EEF is now forecasting 3.6% manufacturing growth, a substantial upgrade from the 2.7% forecast at the beginning of the year.

Darrell Matthews, North West region director at EEF, says: “There is a palpable sense of mounting confidence amongst manufacturers here in the North West and this set of results tells us that it is fully justified.

“The continuing trend for strong positives is a further boost for businesses emerging from the shadow of the recession and a further boost to the local economy and the job market. Manufacturers in this region will also have an important role to play in helping to sustain broad based growth across the UK.”

Philip Storer, partner at BDO LLP in the North West, says: “Government manufacturing policy is clearly paying dividends and is creating an environment in which North West manufacturers are comfortable enough to commit to future investment, both in terms of employment and capital.

“This is a very positive indicator for the rest of the year. What is now needed is for this success to be replicated abroad. We would encourage the Government to introduce more supportive measures for exports, especially given the tentative nature of economic recovery in Europe.”

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