Manufacturing growing in confidence: MTA
1 min read
The latest industry survey from the Manufacturing Technologies Association (MTA) shows growing confidence in the market and another monthly rise in order intake. But, in tune with commentators on other recent surveys, the Association says it is too early to say that the worst is over.
The sector's net order intake has risen, but is still lower than a year ago. Invoiced sales are also showing a month on month increase, all signs that engineering based manufacturing is on the way to economic recovery. As a result of the brighter economic picture business confidence is also rising, with more companies in the sector reporting an increase in enquiries and a positive outlook - confidence is at a five month high according to the survey results. The upbeat news follows what the MTA describes as a pre-budget report that "had precious little cheer for manufacturing".
The MTA says the sector will disappointed at the news that capital allowances of 40% are to be cancelled in March 2010. That will hit the affordability of industrial equipment and hamper investment, it says.
Employment levels still appear negative but there are positive signs to report with most companies responding with 'no change' at present compared to previous months which saw a number of job cuts. However, the outlook for jobs would not be helped by the news the National Insurance Contributions are to rise again, albeit not till 2011, says the MTA.
