Manufacturing in the UK at lowest level for 3 years

A new survey has recently highlighted that the manufacturing industry in the UK is facing some of the toughest conditions that it has seen in nearly 3 years. This information has been compiled by BDO and EEF which has shown that there has been a general weakening of the amount of output across the sector.

Over the past three months the amount of output has fallen significantly meaning that the output is at its worst level since the recession began in 2008. One of the reasons why there is such a problem is because of the Eurozone crisis, which is having a significant effect on the amount of exports that manufacturers in the UK are doing.

Furthermore, emerging markets are also beginning to slow down slightly which is also one of the reasons why manufacturers in the UK are suffering. However, investment and employment levels in the industry have remained strong and it is largely thought that this is because sometimes there are spikes in demand which means that companies have to keep people employed and to keep up investment.

The chief economist at EEF has stated, “Europe is going through a very difficult economic period and so is the wider world, and it seems as if the manufacturing industry in the UK is also feeling this.

Our latest survey has highlighted that there are some pockets of growth, but overall confidence in the market is slipping away. Export balances have recently dropped sharply and this is a particular concern to manufacturers in the UK. Exports are an important source of growth and seeing them fall is obviously a great concern.”