LOCAL manufacturers achieved weaker than expected growth in the second quarter of the year.

The latest quarterly Manufacturing Outlook survey from manufacturers' organisation EEF and law firm DLA Piper, shows that. in spite of Yorkshire companies forecasting a pick-up in activity in 2015, they lost momentum in the last three months .

Only four per cent of firms out of the 46 per cent which expected stronger trading achieved increased output during the second quarter. This compared with 29 per cent of companies seeing increased output in the first quarter.

Only eight per cent of the 58 per cent anticipating more orders saw an increase , compared with 25 per cent which boosted their order books in the first quarter and eight per cent also said they expected employment levels to drop in the quarter.

While exports remain flat, a third of manufacturers are feeling more confident about European sales prospects and this is driving stronger expectations for exports in the coming quarter.

At the same time, sectors supplying to consumers or construction have seen activity holding up well – a trend that looks set to continue into the next quarter.

Andy Tuscher, EEF Yorkshire regional director,said: “Manufacturing is still growing, just not at the pace anticipated at the beginning of the year. The sector is still in positive territory, but the ground is looking a lot less firm beneath its feet.

“Much of this weakening is down to the impact of the decline in oil and gas activity on the supply chain, plus the knock-on effect on domestic demand. There is a range of challenging factors at play, but the net result is that this weakening trend looks set to continue, potentially even through to the end of the year.

”A resilient and productive economy needs a vibrant manufacturing sector, investing in technology, innovation and people. The sector has seen a good run of not only growth, but employment, investment and productivity gains over the past couple of years and it’s vital that the new Government takes all necessary steps to enable this to continue into the future.”

Richard May, partner and head of the manufacturing sector at DLA Piper, added: “There was a lot of uncertainty in the run up to the UK election with few predicting such a decisive outcome.

"Whilst the overall outlook for the manufacturing sector is still one of growth, hopefully a majority government and the promise of increasing economic stability will boost confidence and have a positive effect on manufacturers in the second half of the year."