MANUFACTURERS in Yorkshire have seen a recovery as order books bounced back over the past quarter and expect the trend to continue.

Latest findings by manufacturers’ body EEF reveal that 16 per cent of regional firms saw orders increase and 30 per cent expect to see rising order books over the next quarter - the second highest level in the UK.

The region’s manufacturing output is also set to increase strongly after dipping in the past quarter, with a net 34 per cent of firms anticipating an increase.

Employment expectations have risen modestly with a net six per cent of regional firms looking to recruit in the second half of the year, but EEF says the overall picture will remain subdued.

Investment intentions remain negative, however, with a balance of 15 per cent of firms expecting investment to decline over the next year.

EEF says its latest Manufacturing Outlook survey shows that, after hitting a low point at the end of 2015, industry is slowly turning a corner.

EEF says forward looking indicators are more positive for the second half of the year, although manufacturers appear to be assuming that the UK will remain in the EU and that other factors holding back growth will continue to wane.

Small manufacturers are most subdued about their employment and investment outlook, partly due to uncertainty about with the outcome of the EU referendum.

Andy Tuscher, EEF Yorkshire regional director, said: “Demand conditions at least seem to be heading in the right direction, but manufacturers’ low-key crawl back to growth is still being challenged by sluggish global growth and subdued investment at home.

“While we’ve got some weaker readings in the domestic market and softer confidence levels amongst smaller companies, it’s difficult to unpick any referendum effect with any certainty. However, assuming the UK votes to remain, we expect manufacturing to remain broadly flat in 2016.”