Manufacturing surges to three year high

Ahead of CIPS data due to be published later this morning and expected to also be positive, EEF says the rebound is being led by a stronger domestic market although conditions in overseas markets have also picked up. In line with recent official statistics the upswing in output is broad based across all sectors. The survey also suggests there are signs the UK's investment performance may finally begin to regain ground lost in the past three years with investment intentions, especially among SMEs, escalating sharply to some of the highest levels seen in the survey's history. EEF chief economist Lee Hopley said there was growing confidence that improving trading conditions will continue into the final months of this year and then accelerate through the gears in 2014 but added "we need to see this translate into commitments to invest in new capacity, and for this to take place in the UK". The survey's key findings included: • Output and orders rebounded strongly to balances last seen in 2010 • Broad based across all sectors • Domestic markets leading rebound • Investment intentions rising to six year high • Recruitment holding steady • Forecasts for 2014 upgraded for both GDP and manufacturing