The Engineering Employers’ Federation reports a clear recovery in output growth during the fourth quarter of last year. Its latest members’ survey, conducted last November, showed a positive balance of 20% reporting an increase in output.
A balance of plus 13% report an increase in new orders, driven by the home market. But export orders declined for the fourth successive quarter.
Modest employment growth resumed, while capital investment plans recovered slightly from a weak second and third quarter.
ONS figures reported by the EEF show average weekly earnings to April 1997 rising by between the 3.3% seen in the motor vehicles sector and the 8.1% for other transport equipment, due to the buoyant aerospace industry.
ONS employment figures show an increase of 27,000 employees in engineering in the second quarter of 1997. The total has remained broadly constant at around 1.7 million since last September.
Employment in metal products, electronics, motor vehicles and other transport increased while the mechanical equipment sector remained constant and there was a decline in the electrical equipment sector.