CONFIDENCE among manufacturers has been tempered significantly by a “the realities of 2014”, new findings reveal today.

The bullish expectations of a year ago have eased back, leaving firms cautiously confident as they enter 2015, according to the annual EEF/Aldermore executive survey.

Those expecting UK economic conditions to improve has almost halved from 70 per cent to 37 per cent, while the number of companies expecting worsening UK conditions tripling from five per cent to 17 per cent. Global economic conditions are the biggest concern with 38 per cent expecting them to worsen, against only five per cent a year ago.

Even so, seven in ten manufacturers (70 per cent) say that the UK will be a competitive location for them in 2015.

Most are confident about increasing staff numbers, sales, margins and productivity,.

Nearly half of manufacturers expect to increase export sales in 2015 with hotspots expected to be North America, Asia and South America.

Continued economic and political upheaval in the Middle East and parts of Europe are a concern to 59 per cent of companies with a third seeing more risks than opportunities for their business in the year ahead.

Manufacturers’ top priorities in 2015 will be improving marketing and branding, launching a new product or service and consolidating UK activity . Riskier expansion plans have been pushed down the agenda.

Andy Tuscher, EEF Yorkshire regional director, said: “Manufacturers’ confidence at the beginning of last year was very high – one year on and, while still positive, it has very evidently eased back.

“The realities of 2014 have taken the edge off future forecasts and what we are now seeing is a far more muted outlook, tempered by a backdrop of difficulties in the EU and wider geo-political concerns.

“Recovery is by no means guaranteed and we would urge party leaders – and the next Government of whatever shade – to remain focussed on delivering a fully balanced, stable economy where manufacturing is enabled to expand and grow.”

Leyton Jeffs, Aldermore regional sales director, added: “Although confidence has fallen back, it is great to see that the manufacturing industry is predicted to continue to grow in a way that fuels the UK economy during 2015.”