EAMA July Business Monitor shows continued growth for engineering firms
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UK mechanical engineering companies continue to grow, according to the July Business Monitor issued by the Engineering and Machinery Alliance - EAMA.
There were some mixed messages in the month on month data, although this is not unusual at this time of year, when the summer holiday season affects UK operations, as well as customers in some of the UK's major markets.
So, for example, while overall inquiry levels were good, a fifth of companies reported falls on UK and on export business so that the positive balances dipped markedly.
The same applied to order levels, with a particularly steep fall in the export balance to just +2%, down from +22% in June.
However, the moving three-month average on orders was more positive, still running ahead of last year's improvements at +19% (+14% in 2010) for UK orders and +13% (+9% last year) on exports.
The jobs data are a more steady, albeit lagging, sector indicator with a strong positive balance of +22% firms looking to take on people, producing a running three-month average to July of +27% (14% a year ago).
The Monitor also continues to show the sector investing with nearly two-fifths (39%) of firms saying they are investing in all areas. However, there were still 41% of firms not investing in one way or another, with the bulk (26%) again declaring they are developing projects, but not committing to them.
In July, there was another modest improvement in access to finance. On working capital the Monitor rose into positive territory (+2%). The improvement in investment finance availability halved the negative balance (from -11 to -5%).
EAMA's 12 trade associations represent 1,700 firms: Agricultural Engineers Association, British Automation and Robot Association, British Paper Machinery Suppliers Association, British Plastics Federation, British Turned Part Manufacturers Association, Confederation of British Metalforming, Gauge and Toolmakers Association, Manufacturing Technologies Association, Polymer Machinery Manufacturers and Distributors Association, Printing Industry Confederation, Processing and Packaging Machinery Association, UK Industrial Vision Association.
