Survey: UK factories ride crest of European upturn, for now - RTRS

According to a quarterly report from the UK’s manufacturing association EEF and accountants BDO, the highest proportion of British manufacturers in at least 20 years now report rising output and orders, in the wake of pick-up in the European economy.

Key Highlights:

EEF/BDO survey was conducted between August 2 and 23 and covered 416 manufacturers

Respondents report especially strong demand from the European Union

Domestic orders "remained on the softer side"

"This period is likely to be the peak, however, and we are likely to see a more stable picture in the coming months rather than any further significant acceleration," EEF chief economist Lee Hopley said. "There is little doubt that Brexit is likely to weigh on sentiment over the next twelve months with uncertainty over the UK's terms of exit," she added.

Survey's gauge of manufacturing investment picked up to a two-and-a-half year high

But ... investment levels were "not as positive as might be expected" given strong output and orders

EEF stuck to its forecast that Britain's economy will expand 1.6 percent this year and 1.3 percent next year

"It is vital the government sends a signal to industry and investors in the UK and overseas that it is doing everything in its power to get growth of the UK economy back on the agenda," Hopley said.