Monday, August 07, 2006

Manufacturers upbeat but the recovery is still fragile, says CBI

British manufacturing is improving but the long-awaited recovery is fragile and uneven, and the sector is continuing to shed jobs despite the increase in output. According to a CBI survey released today, most areas of the country have seen a rise in output over the past three months, after 18 months of weakness. But the improvement is tentative, according to the business organisation’s monthly survey of more than 600 firms. Doug Godden, CBI head of economic analysis, said: “Strong export demand driven by a healthy global economy has helped lift manufacturing output over the past three months. But the sector remains fragile and some regions have fared better than others.”

Full Article Guardian Unlimited

The article points out that increased energy costs are hindering recovery, but overall the sector suffers from a general lack of support from successive governments, who have sidelined support for manufacturing. To succeed as an economy and a country, we need to export and manufacturing has for many years contributed significantly to our balance of payments. It is high time that the authorities started to facilitate the expansion and success of manufacturing in the UK rather than continuing to legislate against them and encouraging the growth of imports.

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