UK manufacturers that sell to Northern Europe are “benefiting hugely” from German growth, according to Barclays Corporate’s Sheffield-based head of manufacturing in the north, Chris Forrest.
“With the German manufacturing juggernaut going from strength to strength, the many UK manufacturers that feed into Northern European industrial supply chains are benefiting hugely,” said Mr Forrest.
“This growth is one of the key reasons manufacturing continues to outperform the general UK economy and why sentiment in the sector remains so high.”
Mr Forrest warned that while exporters were enjoying the boost from Northern Europe, the pain of rising commodity prices, and oil in particular, was really beginning to bite.
“Manufacturers are consequently looking much more seriously at the hedging they put in place in order to offset some of the growing uncertainty around just how high the price of oil and other input costs such as copper may go,” Mr Forrest added.