Manufacturing organisation predicts sector will grow 2% in 2018
- Credit: Archant
The manufacturers organisation, EEF, has upgraded its growth forecasts for the sector in 2018 as improved global demand, from European markets in particular, continues to provide a boost to the manufacturing supply chain.
EEF estimates the manufacturing sector will grow by 2% this year, up from its previous forecast of 1.4%. This is faster than the UK economy overall where EEF is forecasting growth of 1.5% in 2018.
Next year the organisation predicts slower growth across the economy and manufacturing with expansion of 1.3% and 0.6% respectively.
Region Director for EEF in the East of England, Charlotte Horobin, said:“Manufacturing activity stepped up a gear through 2017 providing industry with some decent momentum coming into this year. The importance of a buoyant global economy to export-focused manufacturing sectors is again reinforced with growing overseas demand encouraging international manufacturers to ramp up their investment which in turn is spurring particularly strong activity in UK capital goods sectors.
She added: “While this will help top line growth in UK industry and the wider economy it’s also important that the global race to increase investment and adopt new technology is not one in which the UK is left behind. As the Chancellor sets out some thinking about longer term economic priorities in his Spring statement next week, manufacturers will want to see a focus on how the new industrial strategy can help cut through Brexit uncertainty and turbo-charge investment ambitions right across manufacturing supply chains.”