Manufacturers in London and the South East are continuing to enjoy buoyant conditions across most economic indicators, according to a new survey by EEF (www.eef.org.uk) and BDO.

Their Manufacturing Outlook survey for the third quarter shows that output in the region was the stron-gest in the UK, with a balance of +52% — exceptionally strong by historical standards — and a total order balance of +38%, the second-highest balance.

In particular, export orders (+47%) are going from strength to strength and are the highest of any UK region. This reflects the national picture of a sector benefitting from both a pick-up in the euro-zone and growing markets around the world.

This strong performance has boosted business confidence among firms in London and the South East to the highest of any UK region, and it is reflected in the demand for skills, with recruitment intentions more than doubling.

Despite this buoyant picture, the ‘cloud on the horizon’ remains the UK economy. While firms are confident of their own performance, the EEF’s indicator for the UK economy has slipped for the second quarter running (in response to the continued political uncertainty and the squeeze on consumer spending).

“As a result, the EEF continues to expect growth of 1.7% this year and 1.3% in 2018.

Martin Strutt, regional director for EEF in London and the South East of England, said: “Manufacturers appear to have taken the recent political upheaval in their stride and are taking advantage of growing world markets to make hay while the sun shines.

“This period is likely to be the peak, however, and we are likely to see a more stable picture in the coming months, rather than any further significant acceleration.”