Fourth quarter looks strong for manufacturing

November saw positive balances of over a third on enquiries for UK and export business. Overall order levels were also up with balances of +17% on UK and +14% on export activity. Employment saw a balance of +11% reporting job numbers were up. Although there is no clear-cut gain in investment activity, there was a marked increase in the number of firms reporting investment in all areas of the business. EAMA chairman Martin Walder commented: "Although the basic 50:50 split between firms investing in some form of activity and those thinking about it but currently holding back is still a worry, we now have a third of firms reporting investment in all areas. Over the last four or five months investment activity has been more consistent reflecting some confidence about the future. And although a fifth to a quarter of firms say that month on month orders have declined, companies remain cautiously optimistic. "We are pleased the Government's decided to help kick start increased awareness and interest in the use of automated machinery to raise the UK's productive capacity and potential. But it won't be achieved until firms are more confident about the economy and the banks, then they'll be able to commit to increased capital investment. "As far as the Monitor goes there's little or no change in ease of access to working capital or investment finance so far this year, although earlier in the summer we did think we might be seeing the start. We know that some banks are trying hard."