Success in emerging markets and progress in the automotive sector have helped West Midlands manufacturers to post rising output, according to new research, despite struggles elsewhere.
The second quarter EEF/BDO Manufacturing Outlook survey shows that output and orders in the West Midlands remained firmly in positive territory over the last three months at +29 and +36 per cent respectively.
However, looking forward the continuing economic uncertainty and fears over the European economy have taken a toll on confidence with output and orders for the next three months more or less flat.
The regional data contrasts sharply with news this week that the Markit/CIPS manufacturing Purchasing Managers’ Index dropped to 45.9 in May, down from 50.2 in April – the lowest index reported since the depths of the 2009 recession.
Tom Lawton, Birmingham-based head of manufacturing at BDO, said: “The results from this latest survey show that manufacturing remains surprisingly resilient in the face of the combined headwinds of renewed eurozone uncertainty and a very tight lending market.”
The survey released by EEF, the manufacturers’ organisation and business advisers BDO shows recruitment intentions remained strong at +19 per cent in the last three months and +17 per cent in the next three.
