The Chamber reacts to figures showing manufacturing in negative territory despite modest improvement
10/03/2006
The Chamber, which represents businesses in Bedfordshire and Luton, has joined the British Chambers of Commerce (BCC) in calling for the Government to forcefully support the manufacturing sector. Figures published by the Office for National Statistics show the sector remains in negative territory despite modest improvements.
Manufacturing output rose 0.2% in January, sustaining the very modest improvement seen in the previous two months. But further downward revisions to earlier figures show that the sector's performance has been worse than previously thought. In 2005 as a whole manufacturing output fell by 1.1%, while the previous official estimate signalled a full-year fall of only 0.8%.
In the three months November-January, manufacturing output recorded a 0.2% fall over the previous three months and a very large 2.1% decline over the same three months a year ago. Manufacturing output recorded outright fell in three out of the last five years. In volume terms, output is now some 4% below its 200 level.
Commenting on the figures, Cheryl Smart, Commercial Director of the Chamber, said:
'Manufacturing weaknesses reinforce our view that the authorities must act forcefully to support the sector. Alleviating the plight of manufacturing, and countering the threat of rising UK unemployment, remain key priorities.
Added Cheryl: 'The figures confirm the slightly more positive tone shown in the BCC's last Quarterly Economic Survey but do not signal a sustained recovery. The Chancellor must use next month's Budget to remove the threat of further tax increases on business. We also believe that we need an early interest rate cut in the near future.'
The Chamber fully supports the manufacturing sector within Bedfordshire and encourages local manufacturing companies to join the Business Link Manufacturing Sector Network Group. A new series of free events has just been launched with topics ranging from People and Culture, Sales and Marketing to Process Improvement, allowing like-minded companies to meet with each other and discuss common issues. For more information on these interactive workshops facilitated by industry experts, call 0845 850 8822.
