Sterling a major concern for robust UK manufacturing sector, says Eversheds

Robin Johnson, partner and head of diversified industrials at Eversheds, has commented on the latest UK industrial production figures: ‘While the figures indicate a slowing in the recovery, in reality UK manufacturing is still robust and confidence in the medium term remains strong.’

He added: ‘The strength of sterling is a major concern, with several public company revenues statements in the last few weeks adversely affected by currency fluctuations. If interest rates were to rise, sterling would further strengthen, providing a real threat to the recovery.’

Notwithstanding the recent figures, however, the UK remains ahead of the eurozone in confidence, with opportunities in R&D being a particular focus, according to Johnson.

He said: ‘Furthermore, UK high-technology initiatives are bearing particular fruit with renewed focus on additive manufacturing and skills training.’