EEF demands credit help

Britain’s manufacturers need help from credit insurers to see the recession off before the end of the year Lee Hopley, head of economic policy at the Engineering Employers’ Federation (EEF) has said

"The weakness in world markets has hit the sector hard, but it looks like manufacturers are now close to the bottom of the cycle. Nevertheless companies will be navigating through the current economic storm in the months to come. And there are big question marks about when we will see any substantive signs of a recovery in demand” she said.

"While there may be some bright spots on the horizon, the government can not afford to think its work is done and lose focus on the economy. While companies are preparing for the upturn, government and the Bank of England need to ensure they can access the support they need from banks and credit insurers."

EEF Figures

• Output remained depressed in the second quarter with few signs of an improvement in demand in home or export markets.
• Responses on output and orders have improved in some sectors
• Price cutting picks up and margins squeeze continues
• Employment and investment plans continue to be cut back
• Companies have become less pessimistic about the future
• Forecasts show a return to growth in 2010.
• Output and orders balances remained in double-digit, negative territory for the third consecutive quarter
• Output balance fell to -52% from -39%,
• New orders balance stabilised