South west manufacturers are remaining resilient, according to a survey from manufacturers’ organisation EEF and business advisers BDO LLP.
The second quarter EEF/BDO manufacturing outlook survey shows that output and orders remained firmly in positive territory over the last three months at +25% and +31% respectively.
However, looking forward the continuing economic uncertainty and fears over the European economy have taken a toll on confidence with output and orders for the next three months more or less flat.
Looking at the prospects more generally, following the sharp contraction in manufacturing output at the end of last year, the sector is forecast to show a small year-on-year contraction for 2012 of -0.1% with GDP growth of just 0.2%.
Paul Knight, south west regional director at EEF, said: “Manufacturers are holding steady and displaying the resilience and agility they have displayed in response to a number of unforeseen events in recent years. Despite the problems closer to home they are building on successful strategies to access growth opportunities in new markets.
“However, the main risk to activity is still rooted in the on-going Eurozone crisis. While the growing political and economic uncertainty in the region has not significantly dented confidence as yet, it is far from clear what or when the end game might be.”