Output in the engineering sector is expected to outperform the rest of the economy and help lead the UK out of recession, according to information released by the manufacturers' organisation, the EEF
The forecasts released today, show that engineering production is expected to increase by 3.5 per cent this year, more than three times the projected GDP growth of 1.1 per cent.
This strong performance is expected to occur as companies benefit from a rise in exports due to the current weak pound.
Lee Hopley, chief economist at EEF, says: “Industry is looking forward to the future with greater confidence, and more and more companies are reporting signs of improving demand.” On the weak pound he commented: "The weak pound is definitely helping a lot of companies, especially in areas such as capital equipment, cars, electronics engineering and precision instruments."
The growth in output projected should be measured against the backdrop of very weak figures for 2009, when engineering production fell by 15.1 per cent on the previous year and suffered its worst year in decades.
The positive forecasts for 2010 come as part of specific feedback from companies which were questioned for the EEF's quarterly report.
Engineering makes up about half of total manufacturing output in the UK.
