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News Release from: Barclays Commercial Bank
Edited by the Manufacturingtalk Editorial
Team on 08 May 2008
Weak Pound raises materials prices,
inflation
Barclays Commercial Bank said recently that UK manufacturers face rising inflation with steep increases in the price of raw materials - particularly steel and energy costs.
National Head of UK Manufacturing, Barclays Commercial Bank, Ray O'Donoghue, recently commented on the March 2008 ONS Manufacturing statistics He said: "This month's figures show encouraging growth for the quarter with manufacturing output increasing by 0.3% compared to the quarter before and 1.0% on the same period last year
This article was originally published on Manufacturingtalk on 25 Jan 2007 at 8.00am (UK)
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UK manufacturing output rise is encouraging
Commenting on the ONS Manufacturing (Index of Production) figures for November 2006, Barclays said it may only be an incremental rise, it is still a nudge in the right direction.
This growth is being driven by chemicals and man-made fibres industries and underpinned by strong exports, mainly thanks to the weaker pound against the euro".
He said that the statistics reflect the mood of industry: on the whole the manufacturing sector is faring fairly well in the more difficult market conditions, however, there is also a feeling of caution highlighted by the drop from February to March of 0.5%.
O'Donoghue commented: "Although these monthly figures do tend to be volatile, this decrease also suggests the impact of the economic downturn could be starting to impact producers.
Those manufacturers facing the retail industry could feel the squeeze first if there is more of a slowdown on spending on the highstreet".
Looking ahead, O'Donoghue prophesised: "The concern for manufacturers in the months ahead will be the impact of rising inflation with steep increases in the price of raw materials, particularly steel and energy costs and whether they can pass these on or have to absorb them, decreasing profits.
While undoubtedly markets will remain challenging, UK manufacturers are as well positioned to cope as they have ever been.".
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