Decline slowing in manufacturing

New figures from the Confederation of British Industry (CBI) make happier reading for manufacturers.

Statistics from the CBI have shown the rate of decline amongst small and medium manufacturers, in terms of output and orders, is slowing.

The Society of Manufacturing Engineer Trends Survey also suggests that medium-sized manufacturers are predicting a return to a state of growth in the next quarter, showing an improvemnet in management skills.

Adam Buckley, head of programmes for the Manufacturing Institute and CBI councillor for the north-west stated that the figures give rise for cautious optimism among small and medium-sized manufacturers who are so critical to the UK economy.

He went on to say: "The evidence points to a less gloomy outlook, but there is no denying that conditions remain extremely tough, especially for those in industries supporting the housing, automotive and construction industries which are exposed to the full brunt of recession."

According to the survey, optimism about the business situation among small and medium-sized manufacturers is falling at a slower rate compared with a balance of -42 per cent in the previous quarter.