According to the British Chambers of Commerce (BCC), the recent rise in manufacturing output in the UK suggests that the country is continuing to shake off the effects of the recession, but this needs to be supported by the government if the upwards curve is to continue.
David Kern, chief economist at the BCC, said the 1.8 per cent rise in May shows that the manufacturing recovery remains on course, despite the uncertain international background and the impact of the government's deficit cutting programme.
"The government must be more forceful in implementing growth-enhancing policies and in deregulating the labour market. On its part, the Monetary Policy Committee must postpone interest rate increases at least until the final three months of the year," he added.
Recently, the UK Manufacturing Purchasing Managers' Index, compiled by Markit and the Chartered Institute of Personnel and Development, showed there was a modest rebound in production in June.
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Posted by Nikki Barrister
Source: The Sales Engineer News