Tough start to 2013 says EEF/BDO survey

The survey, published by the manufacturers' organisation EEF, and business advisers BDO, shows the European market to be especially challenging. However, the survey also suggests there are signs of conditions improving in the coming quarter when output and orders are expected to recover. In particular there is a notable improvement in the proportion of companies planning for growth in overseas sales across most manufacturing sectors. EEF chief economist Lee Hopley said that weaker conditions at home and abroad had dragged on from the end of last year. And although the outlook was brighter, she said, "This confidence is still fragile; world events have been moving quickly and at the moment it doesn't take much for customers to hold back on placing orders." Tom Lawton, Head of Manufacturing at BDO, said: "These figures round off a gloomy six month run for the sector, however, the storm clouds do seem to be parting slightly. Sentiment is improved for the next three months which is translating into increased employment and ongoing plans for investment. Much of this is being driven by positive export expectations despite the fact that the landscape in Europe remains uncertain. What is needed is positive action, either from Government or increased lending from the banks, that provides the impetus to move positive intentions into actual output and sales."