Food and drink manufacturers ‘performing strongly’
The food and drink manufacturing sector is still performing strongly, despite uncertainty among companies about the state of the economy, according to a new survey.
The business confidence survey of Food and Drink Federation members shows a strong performance in the third quarter of the year – with almost 60% recording increased sales and only 15% reporting a fall. More than half predicted that their sales would keep growing to the end of the year.
However, with most reporting ongoing rises in the costs of commodities and ingredients, 64% expected to put up prices up by the end of the year.
Although few companies are optimistic about the general business environment, most respondents are either maintaining or increasing their investment in facilities, research and staff. In addition, one-third said they launched new lines in the third quarter and 44% expect to have launched products by the end of the year.
“Continued uncertainty over the performance of the UK economy means that members remain cautious, but they have not cut their investment in physical and human resources or delayed taking products to market,” says FDF director of competitiveness Angela Coleshill. “Overall, it’s an encouraging outlook for the UK’s largest manufacturing sector.”