Summary of the editorial from IDS Pay Report 997, March 2008

Manufacturing remains optimistic despite woes of financial markets

Manufacturers continue to record growth and remain optimistic about the future, despite broader concerns about the economy, according to the quarterly survey of manufacturers conducted by the EEF and Grant Thornton, and published on 3 March. This report is a much better indicator of real economic performance than much of the financial journalism recently responding to the current trials and tribulations of the stock markets.

The EEF survey shows that investment intentions remain strong and were up on the previous quarter, while more firms said that they are expanding employment than cutting jobs and they expect this to continue. EEF Chief Economist, Steve Radley said: ‘Despite ongoing economic uncertainty and rising costs, manufacturers recorded another quarter of growth and remain confident about their immediate prospects. Companies are maintaining their investment plans and taking on workers.’

The report says that export markets have driven growth ahead of domestic orders, with the balance on export orders significantly ahead of domestic at 13 per cent and 2 per cent respectively. The outlook for the next three months remains positive, says the EEF, with forward-looking output and orders balances little changed from the previous quarter.