Manufacturing confidence rises

Confidence levels in the manufacturing sector jumped in the third quarter, according to research by BDO LLP that looked at confidence levels in the sector over the next six months.

In a survey covering aerospace and defence; food manufacturing and distribution; automotive; engineering; and technology, building materials, chemicals and pharmaceuticals across the UK, 49.5 per cent of respondents in the third quarter were confident about the outlook for their business over the next six months, a rise from the second quarter, when 37.3 per cent said they were confident.

37 per cent of respondents said their confidence levels were unchanged, while 13.3 per cent said they were negative about the next six months.

Those that do feel negative about the prospects for their business over the next six months are mostly engineering and technology/electronics businesses, which have been hard hit by the downturn in the automotive and consumer-electronics industries. Conversely, two thirds of these businesses intend to invest between one and five per cent of turnover in research and development (R&D), indicating expectations of an upturn in 2010.