11:42am UK, Monday June 07, 2010 |  Ed Merrison, Sky News Online Manufacturing orders and ouput have risen to a 15-year high to accelerate a broad-based recovery for the sector, a new survey reveals. Looking up: Study suggests strong recovery should continue through summer. The Engineering Employers Federation found a growing number of firms are enjoying "buoyant" trading conditions following rising demand in overseas and UK markets. Its survey of almost 550 firms showed that the recovery from recession had gathered pace in the last few months and is set to continue over the summer. But the EEF said the forthcoming Budget would be closely watched by a sector keen for tax reform and a rebalancing of the economy in favour of manufacturing. Chief economist Lee Hopley said:
"The steadily improving trends in manufacturing look set to continue in the coming months and the upswing is being felt right across industry. Manufacturers are pulling in more export orders on the back of a recovering world economy and a better outlook for the domestic market is giving companies some confidence to recruit again." Ms Hopley went on: "But manufacturers are very aware that economic headwinds could still pick up again as there are still risks to a sustained recovery. Great importance is now being placed on the need to rebalance the UK economy. "In the short term this requires a Budget which delivers tax reform and deficit reduction in a way which provides some stability and gives manufacturers the confidence to invest."
The report showed that over the last three months both output and new order balances were at their highest levels since the survey began in 1995, while more firms had recruited staff. Investment intentions remained "flat", held back by uncertainty over domestic demand and future tax changes as well as lack of finance. The EEF forecast a 3.5% growth in manufacturing this year and next as output recovers from the depths of the recession. Article Source: SkyNews