PROSPECTS for Yorkshire manufacturers have improved over the past three months, figures revealed today.
But challenges remain as companies fail to meet their forecasts for the second quarter of 2013, according to the latest Manufacturing Outlook survey published by the EEF manufacturers’ group and accountants and business advisers BDO in Yorkshire.
Output and orders returned to positive territory in the last quarter – reporting a balance of plus 18% and plus13% respectively.
But manufacturers in the region had been expecting an even better performance, with forecasts for the second quarter set at a balance of plus 42% for output and 33% for orders.
Yorkshire and Humber manufacturers appear confident that output and orders will continue to rise – with a balance of plus 33% and plus 16% respectively.
In addition, the survey showed further positive signs in the region’s investment intentions.
In the past quarter, the balance of companies looking to invest has increased, with the percentage balance of those in Yorkshire planning to boost capital expenditure increasing to plus 18% from plus 9% in the first quarter of this year – bucking the national trend which has seen an overall decrease in investment intentions this quarter.
But the balance of companies increasing employment over the past three months has fallen from plus 8% in the first quarter to plus 4% – well below the average reported nationally of plus 11%.
EEF Yorkshire region director, Andy Tuscher, said the “widespread improvement” was welcome news, but added: “A couple of aspects – namely the relative weakness in export orders – suggest that confidence may still be tempered for now.”
Jason Whitworth, partner at BDO, said Yorkshire firms had a lot to be positive about, but were less optimistic about export orders.
