UK manufacturing sees business boost

Businesses operating in the manufacturing sector are becoming increasingly confident following key improvements in output and sales orders.

The Engineering Employers Federation (EEF) undertook a survey of over 500 manufacturing companies, which revealed that at least 27% of companies expect to see an increase in output over the coming year.

The findings also showed that the manufacturing sector has enjoyed growth of 1.5% since the beginning of the year as a result of an increase in momentum for exported goods.

Lee Hopley, the EEF's Chief Economist, stated that the start of 2010 was better than they had expected, and that more firms are becoming confident about their future prospects.

However, Mr Hopely urged firms to remain cautious as there is still much uncertainty regarding the UK’s public finances and general access to funding for businesses:

"But we have to be cautious about predicting a strong rebound, as a number of factors could knock growth off track. The recovery depends on world markets continuing to grow, and the financial system’s ability to provide finance is yet to be fully tested."