UK MANUFACTURING OUTLOOK (Q4 2017)
Recent data paint a more positive picture of the sector than was previously believed to be the case. Manufacturing now looks to been one of the fastest growing parts of the economy during 2017.
This echoes a more global-wide acceleration in manufacturing output, reflecting an upturn in world trade. Some recent business surveys counsel caution particularly regarding the export outlook.
Nevertheless, we expect further near-term strength with manufacturing output expected to continue to grow more quickly than the economy as a whole. However, a number of medium-term uncertainties are likely to persist including sluggish productivity growth and the future of trading relationships post-Brexit.