Over the second quarter of this year, UK manufacturers have seen some of the toughest trading conditions since the end of 2008-9 recession, according to the latest manufacturing outlook survey released by UK-based manufacturers' organization EEF and international accountancy network BDO.
The survey in question showed a more marked weakening than expected in output and orders. The balance of responses on output over the past three months fell to its lowest level since the fourth quarter of 2009 and the orders balance was the weakest since the first quarter of 2010.
The survey clearly indicates that slower demand both at home and overseas is hitting order books, with responses on UK orders turning negative for the first time in 10 quarters. In addition, the survey suggests that the drop in export orders is not limited to sluggish demand in crisis-hit eurozone economies.
However, EEF chief economist Lee Hopley said that some positive news can be taken from the improvement in the short-term outlook and the continuing commitment to invest across manufacturing, as companies look to their competitiveness and market opportunities in the medium term. Meanwhile, Tom Lawton, head of manufacturing at BDO LLP, said, "The manufacturers have learnt from the mistakes of the past, and are investing for the long term and are preparing themselves for an upturn in the market, whenever and wherever this may occur."