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| Growth slows and confidence sinks for UK manufacturers | Growth slows and confidence sinks for UK manufacturers |
| (about 1 hour later) | |
| Confidence among UK manufacturers is "low", export growth is falling, and jobs are being lost according to two surveys out on Wednesday. | |
| The British Chamber of Commerce (BCC) survey shows growth is in decline in both manufacturing and services. | |
| But manufacturing confidence, sales, prices, and growth forecasts are dropping more sharply. | |
| Meanwhile another survey compiled by Markit added that manufacturers are starting to cut jobs. | |
| Its jobs index slipped below the 50 mark for the first time since April 2013 indicating a reduction in staff across manufacturing. | |
| Rob Dobson, senior economist at Markit said: "Job cuts send a signal that manufacturers are becoming more cautious about the future, which may lead to a further scaling-back of production at some firms in coming months." | |
| Markit's overall purchasing managers' index for September is still above the critical 50 level. But at 51.5, it has fallen 0.1 from August and is close to the two-year low that it hit in June. | |
| 'Real concern' | |
| Speaking about his organisation's economic survey for the third quarter, John Longworth, Director General at the BCC said: "The real area of concern is manufacturing." | |
| "Confidence is low, as growth continued to fall, and our measure of manufacturing export growth hit a six year low. | "Confidence is low, as growth continued to fall, and our measure of manufacturing export growth hit a six year low. |
| "Services growth, on the other hand, dipped only slightly and overall trends show the sector remains relatively strong and stable." | "Services growth, on the other hand, dipped only slightly and overall trends show the sector remains relatively strong and stable." |
| The BCC blames global uncertainty, weakened demand from China and the strength of the pound for the slow down. | The BCC blames global uncertainty, weakened demand from China and the strength of the pound for the slow down. |
| However, it added that the results signal moderate economic growth over the next year, with the UK recovery facing serious global challenges. | However, it added that the results signal moderate economic growth over the next year, with the UK recovery facing serious global challenges. |
| Balances | Balances |
| The BCC presents its economic survey for the third quarter of the year as a series of "balances" - the percentage of firms that reported an increase minus the percentage that reported a decrease. | |
| The most dramatic change came when manufacturers were asked whether they intended to increase prices. | The most dramatic change came when manufacturers were asked whether they intended to increase prices. |
| In the second quarter the balance had been 23% in favour. In the third quarter it was only 8%, which indicates that manufacturers are becoming less confident that they can raise prices. | In the second quarter the balance had been 23% in favour. In the third quarter it was only 8%, which indicates that manufacturers are becoming less confident that they can raise prices. |
| Mr Longworth told the BBC's Today programme: "It is quite surprising that this has happened. There are underlying things that are dragging manufacturing back, the lack of good infrastructure, the lack of good export support, there is still a problem of access to finance. | Mr Longworth told the BBC's Today programme: "It is quite surprising that this has happened. There are underlying things that are dragging manufacturing back, the lack of good infrastructure, the lack of good export support, there is still a problem of access to finance. |
| "The credit crunch has not finished for manufacturers." | "The credit crunch has not finished for manufacturers." |