Positive News For The UK Economy

There have been all sorts of news and data released about the prospects for the UK economy some good and some bad, but there appears to be enough good news to feel positive going into the Christmas period.

One bright spot has been the manufacturing sector, which has for years underperformed compared to other sectors of the UK economy. Manufacturing trade body EEF announced in their quarterly survey of the sector, that it was in good health and is even set to outperform predictions for the wider UK economy.

Part of the reason for the rise in production has been the weakening of the pound making UK products cheaper to buy which in turn has driven up orders to near historic highs and kept them there right up until the most recent quarter.

Predictions for the manufacturing sector are 2.1% for this year and 1.4% in 2018. The latter may not sound particularly encouraging until you compare it to forecasts for UK growth of 1.3% in 2018 and just 1.5% this year.

Combine this with the lowest rate of unemployment in the UK since 1975 at 4.3% and there is a lot to look forward to in 2018 as long as the Brexit negotiations yield an agreement that suits all parties.