But will rise in output last?
The unexpected rise in UK manufacturing reported recently has had a beneficial effect on the commercial property market according to Coventry based consultants D&P Holt.
UK factory production rose to a 15 month high in December while new orders rose at the fastest pace since the spring of 2011. This rise in output provided a boost to the market and raised hopes of continued improvement in 2013.
A director of D&P Holt said; “Demand for commercial property in the manufacturing, automotive and supply chain markets definitely improved throughout 2012 and it is within growing industries like these that the market will continue to grow throughout 2013.”
The resurgence in the Midlands’s industrial property market has been noted by other agents who have seen demand increasing for larger premises. Of course any recovery in this sector also has a knock on effect, with a corresponding increase in activity in the warehouse and office categories as businesses expand.
However, in order for this trend to continue manufacturing output has to show sustained growth and there is already evidence that this is not the case. In the past two weeks economists have warned that the recovery has already stalled, raising the prospect of a triple dip recession.
As a result several international bodies have since downgraded their predictions for UK growth during 2013, indicating that the economy remains in a very fragile state.
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