Manufacturer confidence sliding, says Chamber survey

FALLING domestic demand and slower export growth have dealt a blow to manufacturers’ confidence, according to Greater Manchester Chamber’s latest survey.

The economic survey of Greater Manchester businesses for the first quarter of 2010 has highlighted the fragility of economic recovery, after two reasonably positive quarterly reports.

In the domestic market, sales failed to grow for the sixth successive quarter and order volumes contracted again, after only one quarter of growth.

The sales balance fell to -10%, whilst orders suffered a downturn to -19%.

Exports have remained positive, although the growth seen in the fourth quarter of 2009 has slowed down.

Manufacturers also reported net job losses and falling intentions to recruit and to invest over the coming year.

The service sector, however, was more positive and its survey results built on the confidence of the last quarter of 2009.

Domestic sales are now +3%, though orders are -2%; overseas sales grew to +6% and orders are almost flat at +1%.

Recruitment in service sector businesses showed a net increase of +4%, the first positive result for six quarters and intentions to recruit over the coming quarter also strengthened.