UK manufacturers 'set for financial woe'

Thursday, June 3rd 2010

The ongoing financial crisis in the eurozone could plunge British manufacturers into money problems, says an expert.

Paul Fewtrell, head of the Manufacturing Advisory Service at the Manufacturing Institute, believes many firms are "crying out" for help.

There are fears the reduced cost of borrowing and the weakening state of the pound are coming to an end - and both are factors that have previously helped the sector's recovery.

Mr Fewtrell states: "The danger is that these factors could have a knock-on effect."

He adds effective fiscal assistance is not forthcoming when manufacturing firms require and request it, especially at "grass roots level".

The expert admits there is not yet evidence the European crisis is having an impact on exports from the UK, but he also confesses to being concerned.

Indeed, recent figures by Markit/CIPS UK Manufacturing PMI suggested the UK is currently enjoying its best period of sustained expansion in the manufacturing sector since 1994.