Manufacturers optimistic about future growth

The results from Bibby Financial Services business factors index survey revealed that 72% of manufacturers felt that their business was steady or performed well, having actually benefited from the recession over the first quarter of this year. This is compared to 68% in the last quarter of 2009, suggesting better trading conditions for UK based businesses. Of the 300 businesses questioned, manufacturers were also the most optimistic of all industries, 36% of business owners and managers reported feeling positive for the future compared to 27% in the previous quarter. Following a quiet period of activity in January, trading conditions and confidence within the manufacturing sector was lifted towards the end of the first quarter of this year. Manufacturers experienced an upturn in productivity and orders over the quarter, with 49% of manufacturers reporting a rise in enquiries or new customers, and an additional 43% an improvement in supplier relationships. Although hailing the results as positive, Bibby Financial Services, UK chief executive Edward Rimmer, warned: "The sector will do well to remain cautious. The manufacturers' organisation EEF has identified a number of risk factors which are likely to impact growth. The threat of a reduction in public sector spending, coupled with the difficulty in accessing finance, could hinder recovery within the industry. As a result, the manufacturing sector must be nurtured and supported to ensure that firms protect their workforce in order not to lose their skills base."