The UK economy is predicted to expand 2.8% this year thanks to low inflation and a stronger Euro Zone growth, claims an EY Item Club report.
The forecast growth for this year falls slightly short of the previous prediction of 2.9% because the fourth-quarter GDP figures were weaker than anticipated but 2016 is expected to bring a 3% expansion.
Inflation has fallen to zero, which has added to the benefits of higher employment and lower oil prices.
The report stated that the recovery in the Eurozone helped with this and that the pound has reversed the fall against the Euro that was seen in 2007 and 2008. Supermarket price wars have also helped to lower the prices of food and clothing, so customers are feeling more confident about putting their hands in their pockets.
Manufacturing has a huge impact on the global economy as it contributes £6.7 trillion. The UK is currently the eleventh largest manufacturing nation and this totals to 11% of UK GVA and 54% of UK exports, which employs 2.6 million people.