07 February 2017

UK manufacturing confidence hits 20-month high

Manufacturing optimism has reached a 20-month high, according to accountant BDO LLP.

The latest Business Trends Report shows continuing signs of encouraging economic prospects over the coming six months, despite uncertainty around Brexit and the US Presidential Election.

BDO’s Optimism Index, which indicates how firms expect their order books to develop in the coming six months, continues to rise and now sits at 103.7 – from 102.2 in December – and above its long term trend.

Meanwhile BDO’s Output Index, which indicates how businesses expect their order books to develop in the next three months, has increased for the third consecutive months to 97.5 – up from 97.4.

BDO said that it attributes the positive performance of UK businesses to an overall improvement in the global economy, a decrease in the value of sterling and better -performing key export markets.

However, the Inflation Index also increased from 103.8 to 104.5. It warned that while currency depreciation makes exports more price competitive, input prices have risen sharply and squeezed margins.

Peter Hemington, partner at BDO LLP, said: “British businesses are surprisingly confident about the short term, encouraged by the opportunities our cheaper currency and a better-performing global economy have created. These have provided a much-needed short-term boost for our economy, particularly our manufacturers.

“However, government still has much to do in these uncertain times if the UK is going to stay on the right economic track."

Author
Adam Offord | @WM_AdamOfford

Supporting Information

This material is protected by MA Business copyright
See Terms and Conditions.
One-off usage is permitted but bulk copying is not.
For multiple copies contact the sales team.

Do you have any comments about this article?

Add your comments

Name

 
Email

 
Comments
 

Your comments/feedback may be edited prior to publishing. Not all entries will be published.
Please view our Terms and Conditions before leaving a comment.

Related Articles

Car production 17 year high

A growing demand for British-built cars helped to deliver the biggest February ...

AFRC gets forming machine

The Advanced Forming Research Centre (AFRC) at The University of Strathclyde ...

CBI Survey: 'strong month'

Export order books for UK manufacturers have risen to the highest level in over ...

A refreshing outlook

A recent Works Management tour to Coca-Cola European Partner’s Wakefield site ...

For Whom the Bell Tolls

The end of shift bell stands silent at a shipyard on the Clyde that’s ...

How to lead successful change

Kickstarting the site CI initiative ranks on many a manager’s New Year ...

SONY UK Technology Centre

Take the tour of Sony UK Technology Centre, Pencoed on 25 April and discover ...

The Manufacturing Technology C

See the future of high-value manufacturing at the Manufacturing Technology ...

MMC

The 2017 Manufacturing Management Conference will debate the smart factory of ...

How to make it in industry

Find out how EAL learners and apprentices at KMF Precision are making it in ...

Meet the Champions: Gary Ashby

Process technician, Gary Ashby transformed an unfancied factory area into the ...

Meet the Sponsors - Brammer

Visit Brammer on stand C19 and see how Insite?? can boost your bottom line says ...

Shop talk

Cy Wilkinson, managing director of Cressall Resistors talks about the drive to ...