Are UK manufacturers returning to optimism?

UK manufacturers are very positive about the future, following the 'doom and gloom' of earlier this year - survey shows 9 out of 10 are optimistic about prospect.

Commenting on the ONS Manufacturing (Index of Production) figures for August 2005, Andy Martin, national director of manufacturing at Barclays, said: "Despite the slight month-on-month drop, the underlying trend of a quarterly increase proves that official surveys are finally catching up with shop-floor sentiment".

"UK manufacturers are very positive about the future, following the doom and gloom of earlier this year".

"This is backed up by our own survey, conducted only last week, which found that nine out of ten UK manufacturers are optimistic about prospects for the sector." Key highlights of the Barclays survey (over 100 manufacturers participated in the survey, undertaken at 'The Manufacturer Live') are: * Nine out of ten UK manufacturers remain optimistic about prospects for their sector, despite recent tough market conditions.

* Over three quarters of manufacturers reported order books at either normal or above normal.

* More than one in two manufacturers expect to spend 5 to 10% of their turnover on capital investment during the next year.

* one of UK manufacturers' biggest concerns is the availability of a skilled workforce.

83% of manufacturers regard the recruitment and retention of staff as a bigger threat to the future success of the sector than rising raw material costs.

1: Over 100 manufacturers participated in the survey, undertaken at 'The Manufacturer Live'.

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