UK manufacturing growth cools as export orders slip
Britain’s main manufacturing trade association trimmed its growth forecast for 2014 on Monday after its members reported the first fall in export orders since early 2013.
The EEF association said its quarterly survey of members showed slowing growth in output and new business over the last three months, and cut its forecast for factory output growth in 2014 to 3.3 percent from 3.5 percent.
The EEF said that with the euro zone economy stagnating, sterling strong and political risks on the rise, the picture for demand was now more uncertain than for some time, though the overall picture remained positive.
“We’re seeing manufacturers continue to recruit for skilled jobs and increase their plans to invest in the coming year – exactly what the UK economy still needs for balanced growth,” said Lee Hopley, the EEF’s chief economist.
“However, there are clearly increasing downside risks overseas which could make sustaining strong growth and particularly stronger exports more challenging going forward.”
Source: Reuters
