Weak EU exports hit UK manufacturers

Responses to a survey by the manufacturers' organisation EEF and business advisory firm BDO suggest that while the domestic market continues to be a challenging one, export sales have turned negative for the first time since the end of the 2008/9 recession. Firms exposed to European markets have been particularly hard hit by weakening demand. Some sectors are managing to buck the wider trend while others plan to invest in the year ahead but the survey also shows a pick-up in activity is not being factored in for the short term and the uncertain outlook is leading to more caution on recruitment. Commenting, EEF Chief Executive Terry Scuoler, said there was little by way of positive news in thedata. "We've seen growth ebb away during the course of the year and many manufacturers are steeling themselves for a continuation of tough trading conditions in the next few quarters. Tom Lawton, Head of Manufacturing at BDO, said the survey painted "a depressing picture" of the UK's manufacturing sector for all but a few sectors and companies.