UK Manufacturing Industry Set to Expand in 2015

Great Britain’s manufacturing industry started 2015 on a positive note, and the trend is expected to continue over the next 12 months. 

Market Business News reported that in a survey conducted by EEF and DLA Piper, 400 manufacturers revealed that they were experiencing higher demand from European clients. While GDP was originally expected to rise by 2.6 percent this year, predictions have been revised and it is now expected to expand by 2.8 percent over the course of 2015. The Guardian noted that the forecast looks especially good for small- and medium-sized businesses, many of which plan to increase hiring practices this year. Manufacturing output is expected to grow by 1.7 percent during 2015. 

Falling oil prices have had both a positive and negative effect on the industry. While they have prompted more consumer spending, The Guardian explained that they have caused investments to be canceled for manufacturers working in the oil and gas supply chain. Despite this challenge, main output, orders, investment and employment indicators have all been on the rise. Overall confidence levels are high as well, noted the source. The lowered oil prices have mainly affected North West England, and the country’s general economic outlook is bright.