The European Engineers Federation published the results of its Q4 Business Trends Survey, showing strong growth particularly in the mechanical equipment and metal products sectors. In addition, the UK National Statistics agency published its October Index of Production, which is the official account output in the United Kingdom. The report shows:
• Output grew by 0.6 percent in October and was up 5.8 percent from October 2009.
• Growth was broad-based, with 10 of 13 manufacturing sectors showing growth.
• Mechanical equipment and metal products were the two strongest performing sectors.
• But output remains 9.4 percent down from pre-recession levels.
Despite the promising signs of growth in the UK manufacturing sector, the EEF says challenges remain in maintaining that momentum into 2011 so manufacturing can continue to drive the broader economic recovery. With the European Union economic crisis in full swing and the rebalancing of the U.S.-China economic dynamic will only begin in earnest next year as China”s new five year plan begins in March.
According to EEF, the UK government”s Growth Review, which was launched last week, will, in theory, take a look across government to see where it can reform policies that are currently blocking growth, and where to implement new ones to support ambitious manufacturing companies planning for growth.