It was recently reported that UK factories are playing an important role in the national economy recovery.
Plant output has jumped at the same time as oil production has increased. Some manufacturers may therefore need extra supplies of lubricants, such as Fuchs Ecocool Ultralife A, as they might have to adjust to higher demand going forward.
The National Institute of Economic and Social Research (NIESR) think tank commented:
“We expect the slight softening of GDP growth experienced in the first quarter of this year to be temporary and forecast the UK economy will expand by 2.5 percent for the year as a whole.”
In March, the output of gas and oil increased by nearly 5%, according to the Office for National Statistics (ONS), which helped in driving forward production as a whole. The statistics for the month have indicated that total production moved up by 0.5%.
The future performance of the British industrial sector is likely to improve further as some political uncertainties have been removed, according to economist Howard Archer. Dr Archer has asserted that manufacturers could also gain from solid demand from consumers.
However, the progress towards a more balanced British economy has not yet impressed Chris Williamson of data firm Markit, who pointed out that the currently strong pound could be holding back some firms from expanding to their full potential.
Nevertheless, the recent rebound in oil prices may head off sustained deflation. Coupled with potential Eurozone growth, this could spell better times ahead for UK manufacturers.