Weathering the storm

’s manufacturers are continuing to show their resilience despite the slowdown in the

and a raft of rising costs, according to one of the

’s leading business surveys published yesterday.

The third quarter engineering outlook survey, published by EEF and RSM Robson Rhodes, shows that growth continues to be slow but casts doubt on suggestions that industry is in recession. In contrast, whilst conditions remain difficult and margins tight, the survey reported a modest upturn in output in the third quarter in most sectors outside motor vehicles.

Firms have also become more optimistic regarding the next three months and the EEF is forecasting growth in the second half of this year. However, EEF has downgraded its forecasts for both engineering and manufacturing for the year as a whole, due to the weakness of official data for the first half of the year.

Commenting on the survey, EEF Chief Economist, Steve Radley, said: “Conditions remain tough for manufacturing but the picture is considerably better than official data suggest. Companies are continuing to show resilience, despite the effects of massive cost pressures and the current soft patch in the economy.”