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UK manufacturing 'boosted by overseas demand' | UK manufacturing 'boosted by overseas demand' |
(about 3 hours later) | |
Rising overseas demand has created buoyant conditions for manufacturers, an industry study suggests. | |
The Engineering Employers Federation (EEF) predicted manufacturing output would increase by 3.7% this year and by 3.2% in 2011. | The Engineering Employers Federation (EEF) predicted manufacturing output would increase by 3.7% this year and by 3.2% in 2011. |
But separate construction industry research was less optimistic. | |
The Construction Products Association warned government cutbacks would lead to less spending on projects such as schools, hospitals and social housing. | |
This would cause a double-dip recession for the sector, it added. | |
'Reap rewards' | |
The EEF said that the pick-up in business meant manufacturers were creating jobs - although it added these were mainly going to temporary or agency staff. | |
The EEF also warned that cutbacks in government spending and the uncertain outlook for the US could affect growth. | The EEF also warned that cutbacks in government spending and the uncertain outlook for the US could affect growth. |
"Manufacturers have continued to reap the rewards of growth in overseas markets, with the upswing being felt across all sectors and regions," said EEF chief economist, Lee Hopley. | |
"However, we have to maintain perspective that the recovery is coming from a very low base and the risks to the economy in the medium term haven't gone away." | "However, we have to maintain perspective that the recovery is coming from a very low base and the risks to the economy in the medium term haven't gone away." |
In the construction industry, the Construction Products Association said that although output would rise 1% this year, it would fall again in 2011. | |
"We've had a very strong start to the year, but we're now facing severe public sector cutbacks at a time when the private sector has not strongly recovered to take up the slack," chief executive Michael Ankers told the BBC. | |
He added there would be little growth in housebuilding in the next three years. | |
"We'll see this year [and} next year rather bumbling along at the bottom. This year we'll be up slightly and next year down slightly. We hope from 2012 onwards we'll begin to see a more sustained recovery in the industry, but there are many uncertainties." | |
Job data | |
Data last week from the Office for National Statistics suggested that the UK building industry was facing a bleak future after construction orders suffered a 14% fall between April and June. | |
The figures surprised some analysts, especially given the construction sector was credited with the strong overall growth in UK economy in the second three months. | |
Separate economic data released on Monday, suggested that demand for new workers in leisure, tourism and accountancy had offset a slump in the public sector. | |
Recruitment firm Reed said the total jobs market had remained steady in August. |