Portrait of young engineer taking notes

The latest survey of business confidence in the UK chemical sector has showed signs of optimism for 2017 after a tough 2016.

Carried out for the Chemical Industries Association, the latest quarterly survey published in February, said that while margins may well be squeezed due to higher energy and raw material costs, there is set to be strong growth in capital investment, research & development spending and employment in the year ahead.

The report showed that the measures are growing at their fastest rate since April 2016. 95% of companies expect total sales and export sales to grow or stay the same in the next twelve months and more than 80% of companies expect to increase or maintain capital expenditure and R&D spending in 2017.

This should help to create new jobs in a sector that typically pays 30% more than the manufacturing average, says the Association.

Steve Elliott, Chief Executive of the Chemical Industries Association, said “Our sector continues to face challenges, including the uncertainty of Brexit, but chemical and pharmaceutical businesses are focussed on meeting customer needs and seizing opportunities all over the world and this latest survey suggests we are in good shape for the year ahead.”