Business remained buoyant in 2017 despite the uncertainties caused by Brexit
13 Dec 2017
As we come to the end of 2017 and look back on the past twelve months it has been a curious business year. Despite all of the uncertainty and angst caused by the Brexit shenanigans, the UK’s manufacturing industry is currently enjoying a period of steady growth that saw output accelerate in the three months to November, according to the latest monthly CBI Industrial Trends Survey. Repeated reports from BFPA members at both BFPA Board and BFPDA Council meetings have echoed this analysis. Order books continued to fill up, with total orders, by a small margin, the strongest since August 1988. Export orders were the joint highest in more than 20 years. The improvement in total order books was particularly marked in food & drink and chemicals, while export orders strengthened notably in chemicals, electronics and transport goods. Output is also expected to continue expanding in the three months to February.
According to the Manufacturing Outlook Q4 survey from EEF and BDO, UK manufacturers are continuing to ignore the ongoing political uncertainty at home as improved global demand is feeding growth across the supply chain.
This strong performance, across all sectors and regions, has led EEF to upgrade growth forecasts for manufacturing for this year and next, meaning the sector will outperform the economy overall.
These positive conditions in the fourth quarter mean that 2017 will be the first since the financial crisis when both output and order balances have been positive in every quarter throughout the year. Let’s hope that the negative effects of Brexit are not latent in nature and that BFPA members can look forward to an equally strong 2018.
Chris Buxton
CEO, BFPA