Moves towards a single European market have had a key influence on encouraging investment by foreign firms, according to an analysis by Incomes Data Services, which argues that labour market deregulation has not been the decisive influence.
Investment, which fell sharply during the recession, has picked up since 1995. Jobs created increased steadily from 1992 to more than 450,000 in 1995-96. Investment in manufacturing takes around a third of the total, with main growth in paper and print.
Average investment in research and development in the European chemicals industry is close to 3% of sales according to Cefic, the European chemicals industry group.
The biggest spending sector is pharmaceuticals. The industry accounts for 38% of European chemical research investment and typical spending by firms is 6% of sales. Basic chemicals account for 31% of the industry’s total European spend of £7.5bn a year.
Turnover in machine tools fell by 6.1% in the three months to April compared with the previous period, according to Government figures. A small increase in export sales failed to offset a more dramatic 10% fall in home sales.