Growth in British Manufacturing Slows
A survey conducted by the trade body for UK manufacturers has revealed that growth in output is at its lowest for two years.
The EEF published its latest growth survey today, in which it forecast growth for 2012 of just 0.9%. This is a reduction from the 2.2% they previously predicted in September of this year.
They have blamed the worsening global economy for the gloomy outlook.
The survey revealed that just 12% of UK manufacturing companies reported a rise in output during the 4th quarter. That is a sharp slump from the 27% that reported a rise in the previous three months. This is the weakest trading since 2010.
The news should come as a blow to prime minister David Cameron's hopes of stimulating growth in the UK economy. Previously manufacturing had been one of the bright spots in the economy. This year has seen growth in the sector slow however.
"Short-term confidence has all but fallen away," said EEF Chief Economist Lee Hopley. "The signs of caution that had been emerging through the second half of this year have clearly become more entrenched as global growth concerns have escalated," she said.
The EEF said the pain was being felt across all manufacturing sectors, with makers of metal products, electrical and electronics among those hardest hit.