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Manufacturing Records Shock Fall On Cost Cuts

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and so it begins...

Manufacturing records shock fall on cost cuts

The manufacturing sector retreated in August after last month's gain prompting concerns that the recent growth was only a temporary rally and not a sustainable recovery, figures from the Chartered Institute of Purchasing and Supply indicate.

Job cuts and widespread cost reductions, particularly at larger manufacturers, led the monthly purchasing managers index to drop to 49.7 in August, down from 50.2 in July. The drop is the first fall since February and well below predictions of a rise to 51.5. A level above 50 indicates growth while below that level points to contraction.

The growth in new orders slowed, but the figures also gave reasons for optimism. Output rose at its fastest pace since December 2007, with small and medium-sized companies and larger producers recording the strongest growth, while stocks of finished goods fell at the second-fastest rate on record.

Deflation remains a concern as prices continued to fall on the back of subdued global demand.

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David Noble, the chief executive of the CIPS, said: “The future picture for the UK manufacturing sector is still uncertain, and concerns will remain that the improvements seen in recent months may have been temporary rather than a sustainable recovery.

"The investment goods sector in particular showed surprising vulnerability, as domestic and foreign demand for UK capital products fell back following gains in July."

Manufacturing production declined by 0.2 per cent in the second quarter, revised up from an initial estimate of a 0.3 per cent drop — a marked improvement from the 5.5 per cent slump in the first three months of the year.

http://business.timesonline.co.uk/tol/busi...icle6816768.ece

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and yet the buyers reps say they are buying more than ever, well this year, so where are they buying from? not our people, obviously.

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