The Manufacturing Technologies Association's (MTA) industry survey, issued last month, shows growing confidence in the market and another monthly rise in order intake. But the MTA say it is too early to claim the worst is over.
The machine tool sector’s net order intake has risen, but is still lower than a year ago. Invoiced sales are also showing a month on month increase, all signs that engineering based manufacturing is on the way to economic recovery. As a result of the brighter economic picture business confidence is also rising, with more companies in the sector reporting an increase in enquiries and a positive outlook - confidence is at a 5 month high according to the current survey results. The sector will disappointed though, at the news that Capital Allowances of 40% are to be cancelled in March 2010. That will hit the affordability of industrial equipment and hamper investment.
Employment levels still appear negative but there are still positive signs to report with most companies responding with ‘no change’ at present compared to previous months which saw a number of job cuts.
QMT News: January 2010
Manufacturing strengthening - but too early to pull support out - MTA
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