The survey of over 200 British manufacturers – two-thirds of them exporters – found that 59% are expecting business activity to increase over the next 12 months.
Although this is down marginally from 62% in July, the percentage of firms confident of growth in 2018 is higher than the pan-sector UK average of 56% and six points above the level recorded by manufacturers immediately after the EU referendum.
A third of firms in the sector are expecting to step up investment this year and only 18% plan to invest less. Meanwhile, one in four manufacturers expect to create jobs in 2018 and most think their turnover will either increase (47%) or hold steady (37%).
This confidence is underscored by strong order books, with half expecting to grow their order books during the next six months.
Dave Atkinson (pictured), UK head of manufacturing at Lloyds Bank Commercial Banking, said: “The picture painted by our latest Business in Britain survey is a reassuring one, with manufacturers in buoyant mood. Over the past six months, many have grown their order books and this is giving them the confidence to make investment plans. Uncertainty remains but there is every reason to believe the sector will continue to be resilient during 2018 and beyond.”
Atkinson added: “The challenges faced by manufacturers are broadly the same ones that have affected them over the past 18 months since the EU referendum – fluctuating currencies and rising input costs as well as the ongoing challenge of finding the right people with the right skills. Nevertheless, the evidence is that many see an opportunity to use Brexit as the springboard to sell their goods and services further afield.”
Confident manufacturers plan to invest and create jobs in 2018
1 min read
The majority of UK manufacturers are confident about their growth prospects in 2018 and many plan to boost investment and create jobs as order books continue to grow, according to the latest Business in Britain report from Lloyds Bank.
