Posted on January - 20 - 2010
Manufacturers optimistic about the year ahead
Small businesses operating in the manufacturing industry are feeling more optimistic about the year ahead. This optimism is reflected in figures from the British Chambers of Commerce’s (BCC) latest economic survey, which has revealed that the UK is on the brink of leaving the recession.
Manufacturing companies reported that the final quarter of 2009 was the most promising one for home sales since the first quarter of 2008, and the most significant upturn for exports since the second quarter of 2009.
In spite of the findings, manufacturers are still concerned about the prospect of investment and the likelihood of creating employment. This suggests that businesses operating in this sector might be keen to keep a short leash on expenditure over the coming year.
The Chief Economist for the BCC, David Kern, commented:
“A manufacturing recovery is vital in order to secure the much-needed rebalancing of the UK’s economy towards exports and investment.”
Mr Kern went on to say that the BCC’s latest Quarterly Economic Survey showed that manufacturers are beginning to export more as global demand has started to return. He added that to ensure these trends continue for manufacturing firms “the sector must be supported, access to finance [must be] improved and steps [must be] taken to preserve their skills base.”
An initiative to support business in the manufacturing industry was announced by the Royal Bank of Scotland (RBS) and NatWest this week. They have pledged a massive £1 billion of low-cost loans to boost the availability of credit for struggling firms in the sector.
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