Deloitte Economic ReviewManufacturing could enjoy a mini-revival with its share of economy rising to 13% |
In the second quarter of the Deloitte Economic Review, our Economic Adviser, Roger Bootle, turns his attention away from the gloom of our immediate economic prospects to consider what the post-recovery economy might look like.
Roger's views on the UK manufacturing sector include:
- The economy over the next ten years will look significantly different to the economy of the last ten years
- Although concerns have been voiced about whether the UK’s manufacturing sector has shrunk too much, he sees no reason why it cannot experience a mini-revival
- Over the next decade, manufacturing’s share of the economy could temporarily grow from 11% to 13%. In contrast, the financial sector’s share could shrink from 8% to more like 5%
- The drop in the pound (£ sterling) will help the UK to play to its traditional exporting strengths – such as aircraft
- The car industry, in particular, could do well. More vehicle production may now be shifted to the UK
- The renewed emphasis on manufacturing could boost trend productivity in the economy, given that manufacturing lends itself more easily to technical progress than the services sector
Read the full report: Deloitte Economic Review (PDF)
Deloitte Economic Review
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