Some grounds for optimism

A new report from the EEF says half of the manufacturing sector’s executives think that the UK economy will deteriorate this year. After optimistically forecasting that the economy would grow at 2.1% last year, the manufacturers’ organisation is more cautious for this year and is predicting growth of 0.9%.
It says that 49% of the 204 member companies it surveyed expect conditions in the UK economy to worsen this year, and only 21% expect an improvement. The main worry is the uncertainty produced by the as-yet unresolved euro-zone crisis, followed by concern about increases in raw-material prices. However, companies are more optimistic about their own prospects and are looking for benefits from exploiting untapped export markets.
Two-thirds say they have overhauled their business plans, while 80% are looking for either unchanged or improved sales. EEF chief economist Lee Hopley says: “The road ahead for manufacturing and the UK is extremely uncertain, but there are still some grounds
for optimism. “Most manufacturers continue to grasp the opportunities in untapped markets and in faster-growing emerging markets.”