Region’s firms enjoy positive start to 2015

The findings show that while the economic environment has been “somewhat turbulent”, the region’s manufacturers have still put in a good performance in the first quarter of the year, with a net 29 per cent reporting increased output and 25 per cent reporting an increase in orders.

There was also good news for employment, with a net 33 per cent of the region’s manufacturers looking to hire more staff during the first quarter of the year. Investment was also positive, with a net 30 per cent reporting an increase at the start of the year. The region’s results contrast sharply with the North East and North West, where the fall in the oil price appears to have had an impact on orders. Nationally, the EEF is continuing to forecast healthy growth at 1.7 per cent this year, revised down slightly from two per cent in the last quarter. GDP is expected to increase by 2.8 per cent in 2015, a slight upward revision from 2.6 per cent in the previous quarter.

Andy Tuscher, Yorkshire and Humber region director at the EEF, said: “Any concerns that manufacturing activity might wobble at the start of 2015 have been quashed. The good news is that this solid start looks set to continue.

“While confidence levels overall are holding firm, policies to sustain positive investment plans, encourage exporters and improve access to skills remain the order of the day.”

Richard May, partner and head of the manufacturing sector at DLA Piper, said it was pleasing to see new export orders growing.