Manufacturing growth easing, says BDO/EEF report
Manufacturing growth in the West Midlands has slowed sharply over the past three months, according to the Q4 2011 Manufacturing Outlook survey.
The number of companies reporting increased output fell from +30 per cent to +14 per cent, said the research from EEF, the manufacturers’ organisation, and accountancy firm BDO.
In the last three months the region’s output fell behind the North West and North East, but still continued to be positive at +14 per cent.
Total orders for the region also rose by a balance of 5 per cent.
The outlook for Q1 2012 is "gloomy", said BDO, as manufacturers are predicting falling output and orders.
Tom Lawton, Birmingham based partner and head of manufacturing at BDO, said: "Although exports have maintained a relatively strong performance in the quarter the continuing problems within Europe, which is by far our biggest export market, are clearly having an effect and generally increasing a feeling of nervousness and lack of confidence.
"However, despite this gloom, manufacturing looks set to perform well in relation to other parts of the UK economy in 2012 and we would strongly encourage the government to increase the momentum of support for the sector in order to help rebalance and boost the economy."
