Modest Manufacturing Recovery Must Be Supported
9th August 2010
Commenting on the manufacturing output figures for June, David Kern, Chief Economist at the British Chambers of Commerce (BCC), said: "These figures are slightly weaker than expected, but coming after a strong increase in May, manufacturing remains firmly in positive territory when compared with a year ago.
"While the manufacturing sector's performance this year is pleasing, there is no room for complacency. The recovery is not yet secure, and we are now seeing worrying signs that the global economy is slowing down.
"Although manufacturing is still enjoying a relatively competitive exchange rate, global problems, particularly in the eurozone, pose serious challenges. As well as an extended period of low interest rates, the government must ensure that it supports manufacturers by allowing them the freedom to invest, grow and create jobs."
Maresa Molloy, Head of Policy and Information at Liverpool Chamber of Commerce commented: "On Merseyside, it is the manufacturing sector that is leading a marked improvement in sales - particularly those with overseas sales. We are also seeing evidence of a bounce in manufacturing recruitment. However, there is also some evidence of pressure on prices beginning to build up with of manufacturing businesses under pressure from rising raw material prices."
