Manufacturing growth set to outstrip economy in 2014

The sector is forecast to grow by 2.7% in 2014 compared to 2.4% for the economy overall. A strong performance during 2013 also resulted in EEF revising its forecasts for this year, showing manufacturing contracting by just 0.1% and the economy growing overall by 1.4% However, there remained risks to a strong, sustained recovery with both output and orders balances down on expectations from the previous quarter with the export picture in particular looking more uncertain than in previous quarters. The EEF said: "The continued strength in plans to invest and recruit does point to some optimism that the improving trend in manufacturing seen so far this year will be sustained. EEF chief economist Lee Hopley added: "Increased confidence is evident in companies looking to increase their headcount and, most importantly for balanced growth, step up their investment. "However, uncertainties in the global economy remain and a sustained recovery is not secure. As a result, growth must remain a priority for government over the remainder of this parliament, starting with the Autumn Statement this week." Tom Lawton, head of manufacturing at BDO, said: "Continued strong demand within the UK domestic market is very encouraging and this does suggest that a sustainable manufacturing recovery has gained a foothold in this country. However, international markets hold the key to a fully-fledged and meaningful improvement for in UK manufacturing and these markets remain frustratingly fragile. "We haven't missed the boat yet, but companies need to stand ready and be supported by an accessible, Government backed export framework in order to take full advantage of the recovery on the continent and beyond once it starts."