Orders rise but manufacturers remain cautious

NORTH East manufacturers have seen a sharp rebound of activity during the third quarter of the year but are wary of potential headwinds that could be heading their way, a new survey suggests.

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The Make UK/BDO Q3 Manufacturing Outlook survey for the North East found that output and orders in the third quarter came in very strongly at a balance of +43% and +29% respectively, while investment intentions jumped sharply to +43%.

The survey's authors said the scores suggest that pent up demand is now coming through, while the positive picture from manufacturing firms has translated into recruitment intentions which also rose sharply to a balance of +43%.

But the survey also pointed to higher than expected costs for around two-thirds of manufacturing firms, while 70% are expecting further rises in business taxes in November's Budget.