LONDON: Manufacturing continues to improve and will help return the UK’s economic output to growth, according to a new report.
Output among manufacturers is rising, with more businesses expecting healthy order books in the coming months, said BDO.
The business advisers said that in contrast to manufacturing, the services sector continues to contract.
Peter Hemington, of BDO, said: “Amidst slowing growth in the economy as a whole, UK manufacturing is a definite bright spot at the moment.
“However, our sense is that the recovery is weakening month on month.
“Given the continuing ability of the UK to create jobs at a surprisingly fast rate and the continuing relatively high levels of inflation, we can understand the calls for a hike in the interest rates.”
Lee Hopley, chief economist at EEF, the manufacturers’ organisation, said: “The UK is facing a potentially game-changing point as we leave the EU whilst the sector is also on the cusp of massive technological change and grappling with long-term investment decisions.
“Policy makers must now focus on evolving the positive policy framework set out earlier in the year into clear strategy which gives manufacturers confidence about the competitiveness of the UK in the future.
