Manufacturing ‘is not all gloom and doom’
AN ENGINEERING chief claimed Teesside was bucking the trend of a national survey, which painted the bleakest picture for manufacturing in seven years.
The latest Purchasing Managers’ Index (PMI) for manufacturing fell in June to 45.8 from 49.5 the previous month - the lowest level since 2001 as spiralling oil and raw material costs continued to squeeze margins. The crucial 50 mark in the PMI index separates growth from contraction.
Output declined from 49.2 to 43.5 and with new orders and jobs also falling, the survey said manufacturers were having to pass on more costs to customers.
But Tony Sarginson, regional policy manager at manufacturers’ organisation EEF Northern, said the results did not reflect the local picture.
He said: “From our data, the markets that are servicing the oil and gas, petrochemical, process and offshore sectors are continuing to do well. With the boom in oil prices, companies are working on new infrastructures and technologies to extract the oil.”
