Economic recovery taking hold in manufacturing

Gautam Dalal, KPMG's Head of Diversified Industries

Further evidence of the economic recovery taking hold in the UK manufacturing sector comes in the latest KPMG Global Business Outlook survey. The data, compiled by Markit for KPMG, shows strong levels of optimism around key measures such as business activity, revenues and profits. In fact, 68% of UK manufacturers expect to be busier in the next 12 months compared to just over one in ten who forecast a drop in activity levels.

Commenting on the findings, Gautam Dalal, KPMG’s head of Diversified Industrials, says, “The UK manufacturing numbers are as reassuring as we could have hoped for at this stage of the recovery. The continuing competitiveness of the pound has doubtlessly aided this export led sector and contributed to the optimism present.”

But he adds, “We need to ask longer term questions about where manufacturing will figure in the government’s efforts to rebalance the economy and reduce our dependency on the financial services sector. If we assume that manufacturing is going to be part of that rebalancing, are we in a suitably fit state to take advantage?