Optimism for UK Manufacturing – Says IoD

1 May 2006

The Institute of Directors (IoD) today published new survey evidence of a surge in manufacturing confidence and performance.

Results from the IoD’s Quarterly Business Opinion Survey (BOS), published today, show that company performance in the manufacturing sector rose sharply, with the balance of those company directors stating that their company was performing well, rising from 60% in the previous survey to 79% now.

The optimism balance in manufacturing surged from 5% to 34% over the same period.

The IoD’s Chief Economist, Graeme Leach, said:

“The IoD’s latest Business Opinion Survey results provide guarded optimism over the manufacturing outlook, because there’s evidence of a simultaneous surge in both manufacturing confidence and performance. We recognise there have been false dawns before, but the good news now is that confidence and performance have surged together. This hasn’t happened over recent years”.

The BOS also showed that investment intentions have improved sharply, with the balance of those directors more optimistic about their company’s investment outlook rising to 22% from 9% previously.

Graeme Leach also said:

“The latest survey supports official statistics suggesting the economy is re-balancing, with stronger growth in investment. The survey also suggests a slight pick-up in growth across the whole economy”

The IoD’s Business Opinion Survey is a quarterly survey of 500 IoD members undertaken by NOP, with the sample structured to represent the sector and business size profile of the IoD membership.

The table below shows the main results from the IoD’s quarterly BOS surveys over recent years.