Latest machine tool forecasts announced by the MTA

The MTA is forecasting an uncertain environment for the UK machine tool sector over the next year. At its annual Forecast Seminar, held at the University of Warwick's International Digital Laboratory, it was pointed out that while 2012 has been a stronger year than 2011, next year is uncertain. There is an increased level of caution about demand, especially related to UK-based machine tool purchasers who are exporting to Europe where demand is likely to be weaker in the coming year. Growth is expected to return in 2014 as the general economic situation improves.

A presentation given by John Walker, chairman of Oxford Economics, focused on the outlook for major global economies. While the prospects for the US, if the fiscal cliff can be avoided, are looking quite bright over the next 3 to 4 years, the situation in Europe is less optimistic.

The threat of a collapse of the Euro remains, and the austerity measures being implemented by a range of countries means growth is going to be limited in most economies.

However, Walker stressed the political determination of countries such as Germany and France to ensure the Euro did not fail and his belief that this determination would continue.