Half of UK manufacturers expect economy to deteriorate Manufacturers' organisation the EEF said 49pc of the 204 member companies surveyed expect conditions in the UK economy to worsen this year and only 21pc expect an improvement. The main worry is the uncertainty produced by the unresolved eurozone crisis, followed by concern about increases in raw material prices. But companies are more optimistic about their own prospects and are looking for benefits from forays into untapped export markets where growth in sales of products and services are brighter. Two-thirds say they have overhauled business plans while 80pc are looking for either unchanged or improved sales. Small and medium-sized companies are banking heavily on a home market improvement and opening the door to recruitment. The eurozone uncertainties are reflected in indications that customers inside and outside the EU appear to be holding off placing orders as concern for short-term growth prospects becomes more acute. After forecasting optimistically the economy would grow at 2.1pc last year the EEF is more cautious and is looking for a 0.9pc improvement in 2012 with the manufacturing improvement clipped from 3.2pc to 2.8pc. The jobless total is forecast to remain at 8pc of the labour force and the inflation rate drop from 3.2pc to 4.5pc. Lee Hopley, EEC chief economist, said: "The road ahead for manufacturing and the UK is extremely uncertain but there are still some grounds for optimism. Most manufacturers continue to grasp the opportunities in untapped markets for services and in faster growing emerging markets.