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Manufacturers must spend their way out of recession – says Chamber

It is vital that manufacturers are encouraged to spend their way out of the recession in the light of new figures from the Office of National Statistics (ONS), said business leaders in Birmingham.

Statistics show that manufacturing output remained unchanged for the second consecutive month in November.

Paul Bassi, president of Birmingham Chamber of Commerce and Industry (BCI), said: “Keeping inventory levels low will only serve to continue the no growth output.

“There is no doubt that conditions remain tough and demand remains weak. The Chamber’s latest Quarterly Economic Survey indicates that UK sales in manufacturing have fallen.  In the final quarter of 2009, 30 per cent of firms reported a decrease in sales compared with 26 per cent in Quarter 3. We look forward to seeing Quarter 4 GDP figures, where economists have predicted a return to growth.”

He added: “It is imperative that companies in the West Midlands, with its high manufacturing base, receive better access to finance and government incentives such as business and property rate subsidies and taxation cuts which will help them to spend their way out of the recession.”

 

 

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