For Immediate Release:
(www.peoplevox.co.uk), September 24, 2010
Eurozone services and manufacturing sector saw a surprise slowdown in September
Whilst Markit's composite eurozone index showed a figure categorised as growth, it is the lowest in seven months, pulled down by Greece and other Mediterranean countries. On the flip side, Germany and France are looking strong creaing jobs at some of the festest rates experienced in years.
What does this mean to manufacturing, particularly in the UK? While Fench and German manufacturing is steaming ahead, with their own country spending holding up well, the UK is remaining is less good shape with high inflation and banks holding onto 'their' money, preventing many manufacturers from expanding out of the problem.
"We are seeing planned company investments be held off unless they have an almost immediate payback, as we are unable to predict when an upturn will occur - the economies, both home and away, remain uncertain and in many cases this 'double dip' is right around the corner", said a leading components manufacturer based in the UK.
"As a UK manufacturer of low value components required as spare parts on various forms of transport around the world, we continue to benefit from the weak pound as companies aborad can buy our products at a 10-15% discount against our foreign competitors. We are not hiring; we are not firing - we are however looking at various investments to make us more efficient and then competitive for when the economy bounces back".
Unemployment finished at 2.47 million in the UK in the most recent count.