Manufacturing sector failing to rebalance the economy: BCC

The BCC's latest quarterly economic survey (QES), which balances the positive and negative views of 6,700 responses from British businesses, showed that while many balances are still in positive territory, indicating growth, this is weaker than in previous quarters. Figures for the domestic market, exports, business confidence, cashflow, and investment in plant and machinery have weakened over the last quarter. At home, there are signs of stagnation, cashflow remains a real concern for businesses, exports are disappointing as are investment levels in plant and machinery – all suggesting that the much-needed rebalancing of the UK economy is not yet occurring, says BCC. The figures also showed a fall in the balance of manufacturers expanding their workforce, or intending to do so in the future. Business confidence among manufacturers also fell by seven points in the last quarter but does at least remain firmly in positive territory (+33%) as did the balance measuring manufacturers' confidence in in profitability (+16%). David Kern (pictured), BCC chief economist, said the results pointed to a deterioration in the economic situation, with concerning signs of stagnation in the domestic economy. "The disappointing Q3 balances for exports, and for investment in plant and machinery, suggest that the much-needed rebalancing of the UK economy is not yet occurring."