Manufacturing gains, but economy fragile

The latest data show that Q4 2009 showed some improvements for manufacturers, but concerns remain about a weak recovery in 2010.

By News Desk
12th January 2010 at 8:29

BCC Economic Survey Q4 2009The latest figures from the British Chambers of Commerce (BCC) Economic Survey reveal that, although on the brink of leaving recession, the economy during 2010 will remain fragile. But manufacturers, in particular, are feeling more confident.

Manufacturing companies reported their most positive quarter for home sales since Q1 2008 and for exports since Q2 2008.

Nevertheless, manufacturers were far less confident about investment and the likelihood of creating employment, suggesting these businesses, like many are keep a very tight rein on expenditure.

The service sector performed worse than manufacturing on all measures in the BCC survey, including domestic market sales and orders, employment and investment.

David Frost, director-general of the BCC commented:

Businesses are showing resilience despite difficult and uncertain trading conditions. Confidence is improving, and the boost in exports must be nurtured in order to strengthen Britain’s trade position globally, and to help rebalance the economy away from an over-reliance on the public sector.

Positive signs are definitely present, but many are still concerned that green shoots may be stunted by the early frost of a double-dip recession.

David Kern, chief economist at the BCC, is one of those and points out that:

With current pressures on capacity modest, and price pressures muted, the Monetary Policy Committee can afford to maintain an expansionary stance, so as to reduce the risk of a double-dip recession.

Looks like we won’t be seeing the end of the Bank of England’s welcomed, quantitative easing any time soon.

[Picture credit: James Cridland licenced from Flickr]

Commenting Is Easy

Do you have an opinion on this news item? Have something to add that others might find helpful? Then please leave a comment in the box below.

If you'd like to have your image included next to your comments here, then you can set yourself up with an avatar in just a couple of clicks.

Leave a comment

Related Posts

Photostream

Listen to the sales podcast for SMEs Subscribe to the podcast on iTunes

Staveley Head why share business tips

BUSINESS PODCASTS

Click on one of the play buttons to listen to inspirational interviews with entrepreneurs from SmallBizPod.

SmallBizPod #74 - digital startups on Digital Mission to NYC

SmallBizPod #74 - digital startups on Digital Mission to NYC

PostedDetails | PostediTunes
play small business podcast now
SmallBizPod #69 - Clive Birnie, MBOs and jumping through windows

SmallBizPod #69 - Clive Birnie, MBOs and jumping through windows

PostedDetails | PostediTunes
play small business podcast now
SmallBizPod #57 - Enthuse, Exceed, Enjoy.  King of Shaves.

SmallBizPod #57 - Enthuse, Exceed, Enjoy. King of Shaves.

PostedDetails | PostediTunes
play small business podcast now
SmallBizPod #91 - interview with Roger Bootle on the Trouble With Markets

SmallBizPod #91 - interview with Roger Bootle on the Trouble With Markets

PostedDetails | PostediTunes
play small business podcast now
SmallBizPod #51 - Interview with Nigel Botterill of thebestof

SmallBizPod #51 - Interview with Nigel Botterill of thebestof

PostedDetails | PostediTunes
play small business podcast now
SmallBizPod #64 - British Library, Facebook and Startups

SmallBizPod #64 - British Library, Facebook and Startups

PostedDetails | PostediTunes
play small business podcast now

PARTNER PROMOTIONS

If looking to boost your businesses performance with promotional marketing, travel incentives or incentive schemes get it touch with NDL Group