Manufacturers upbeat as big week begins

Mar 1 2010 by Peter McCusker, The Journal

MANUFACTURERS have more confidence than at any time since the start of the credit crunch saying there are signs demand is starting to pick up.

The first quarter Manufacturing Outlook report, published today – at the start of Manufacturing Week – reveals a larger than expected improvement in output and orders over the past three months

Companies are consequently the most upbeat since the financial crisis began in mid-2007, says the report by the manufacturers’ organisation EEF, and national accountancy firm BDO.

However, EEF stressed a number of risks remain to manufacturers prospects.

These include uncertainty about how to repair the public finances, ongoing access to finance issues and the sustainability of recovery in key export markets.

EEF region director Alan Hall said: “Having emerged from the recession at the end of last year, the start to 2010 was better than expected.

“Clearly more companies are becoming more confident about their prospects and we’re beginning to see the real benefits of an export-led recovery.

“But we have to be cautious about predicting a strong rebound, as a number of factors could knock growth off track.

“The recovery depends on world markets continuing to grow, and the financial system’s ability to provide finance is yet to be fully tested.”