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07.12.2015 15:34

U.K. manufacturers' association EEF lowers its manufacturing growth forecasts

The U.K. manufacturers' association EEF lowered its manufacturing growth forecasts on Monday. The manufacturing sector in the U.K. is expected to drop 0.1% in 2015 and to rise 0.8% in 2016.

The EEF expects the U.K. economy to expand 2.4% in 2015 and 2.1% in 2016.

The EEF said that output balance has reached the lowest level since the third quarter of 2009, while employment and investment balances were negative for the first time since the first quarter of 2010.

"The prospect of manufacturing contributing to growth in the UK economy this year has all but faded away with another disappointing set of indicators from our survey. The downbeat mood may not be universal across all industry sectors, but it certainly seems to be spreading as the challenges have mounted through this year - from the collapse in the oil price, slower world trade growth and weaker than expected construction activity," EEF Chief Economist, Lee Hopley, said.

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