UK manufacturing growth slowing, says EEF

Growth in the UK's manufacturing sector has slowed, according to a survey by the EEF trade association. The manufacturing body, which conducted the quarterly survey between 30 July and 20 August, said members had reported a slowdown in both orders and output. Members also reported their first drop in export orders since early 2013. The EEF now expects the manufacturing sector to grow by 3.3% in 2014, down from its previous forecast of 3.5%. ‘UK manufacturing cannot insulate itself from global market conditions and this is clearly shown in the dip in output,’ said Tom Lawton, head of manufacturing at accountancy firm BDO, which helped with the survey.  Despite the slowdown, the rate of growth forecast for 2014 would still mark the sector's fastest expansion since 2010 when output grew by 4.2%. The EEF also said that manufacturing firms were still expecting a positive third quarter, and expected to increase their spending for a 17th consecutive quarter, according to BBC.