A report reveals that even though the manufacturing activity in U.K has shrunk this year, there are good chances that it will expand in the coming year; although thousands of industrial jobs could be cut down to balance the slumping export performance.
As per EEF, the manufacturing industry came down by “0.1% this year”, whereby dragging down “lower productivity in oil and gas” while causing weakness in the “steel industry” and “exports market”.
The last three months of the current year exhibited the “worst set of data since 2009”. However, the international sales were deterred due to the pound’s strength while the investment of the industry took a beating as the oil prices remained low.
The forecast of EEF shows an eight percent growth in the manufacturing sector in the coming year. Even though, there is a steady “slowdown in capital expenditure in the North Sea oil and gas industry”, whereby leading to “a 2% decline”.
The effects of the U.K’s steel plants being closed down reflected on the “basic metals industry” which faced a a 12.6% drop”.
Nevertheless, there is hope on the transport sector’s side, as it could “provide a lift to the manufacturing industry” for there is a growing demand in “aircraft from the Asia Pacific region”. The forecast shows a “2.1% increase in transport for 2016”. The Chief Economist at EEF, Lee Hopley added:
“Looking at the sector as a whole, growth has disappointed in 2015 and we’ve seen overall confidence levels tail off through the year”.
Hopley believes that some sectors will pick up “positive momentum” in the coming year while “others will have been hit hard by global factors”. In his words:
“Looking forward, the divergence in performance shows no signs of abating though most manufacturing sectors should see positive growth next year, albeit at varying levels”.
References:
http://www.digitallook.com/
As per EEF, the manufacturing industry came down by “0.1% this year”, whereby dragging down “lower productivity in oil and gas” while causing weakness in the “steel industry” and “exports market”.
The last three months of the current year exhibited the “worst set of data since 2009”. However, the international sales were deterred due to the pound’s strength while the investment of the industry took a beating as the oil prices remained low.
The forecast of EEF shows an eight percent growth in the manufacturing sector in the coming year. Even though, there is a steady “slowdown in capital expenditure in the North Sea oil and gas industry”, whereby leading to “a 2% decline”.
The effects of the U.K’s steel plants being closed down reflected on the “basic metals industry” which faced a a 12.6% drop”.
Nevertheless, there is hope on the transport sector’s side, as it could “provide a lift to the manufacturing industry” for there is a growing demand in “aircraft from the Asia Pacific region”. The forecast shows a “2.1% increase in transport for 2016”. The Chief Economist at EEF, Lee Hopley added:
“Looking at the sector as a whole, growth has disappointed in 2015 and we’ve seen overall confidence levels tail off through the year”.
Hopley believes that some sectors will pick up “positive momentum” in the coming year while “others will have been hit hard by global factors”. In his words:
“Looking forward, the divergence in performance shows no signs of abating though most manufacturing sectors should see positive growth next year, albeit at varying levels”.
References:
http://www.digitallook.com/
