Tough going for region’s manufacturing sector as output and orders fall

Output and orders fell from a balance of 14 per cent and 24 per cent to three per cent and 11 per cent respectively in the last quarter, at a time when firms were worried about the ongoing crisis in the eurozone.

EEF regional director Andy Tuscher said: “There is little positive news in these figures. 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.”

BDO partner Jason Whitworth said: “A depressing picture of the region’s manufacturing sector has been painted in this quarter’s survey, for all but a few sectors and companies.

“The reduction in exports is a particular concern and, while this mostly reflects the turmoil in the eurozone, it also highlights the scale of the challenge in growing exports to emerging markets to offset the downturn in much of Europe.

“On a more positive note, investment intentions seem to be defying gravity but the ongoing issues around access to capital and an unsupportive tax structure may yet have a serious impact on actual investment.

“This survey shows that the sector is nowhere near where the Government wanted it to be two years ago, and emphasises the need for a long-term industrial policy focused on manufacturing.”