UK (BBN)-UK manufacturing is growing at a slower rate than expected as the sector loses momentum, new research suggests.
Engineering and manufacturing employers’ body EEF says its latest survey of firms showed demand for goods in the UK had weakened in the past few months, as exports remained flat, reports BBC.
Lee Hopley, EEF chief economist, said that manufacturing was still growing.
However, he said it was not expanding “at the pace anticipated at the beginning of the year”.
The sector is still in positive territory, but the ground is looking a lot less firm beneath its feet,” he added.
Much of this weakening is down to the impact of the decline in oil and gas activity on the supply chain.”
Mr Hopley said the “weakening trend” could continue to the end of the year.
The sector has seen a good run of not only growth, but employment, investment and productivity gains over the past couple of years and it’s vital that the new government takes all necessary steps to enable this to continue into the future.”
The EEF represents a quarter of Britain’s manufacturers and manufacturing represents about 10% of the UK economy.