Manufacturers report record sales despite economic gloom

The number of manufacturers reporting increased sales and orders in UK markets at the end of last year was at its highest since 2004, according to the latest survey of Greater Manchester businesses.

The Greater Manchester Chamber survey for the final quarter of 2007 also revealed confidence about improved profitability over the next year had risen to its highest level for three years.

However, the survey showed that increases in export sales and orders had tapered off as had confidence over increasing turnover.

Adam Howell, Assistant Policy Manager (Research) at Greater Manchester Chamber, said: “The reduced growth in export sales and orders may be a reflection of the strong pound coupled with overseas competition and declining confidence in key markets, such as the euro-zone and the US.”

The Chamber’s survey showed service sector performance worsened in the last quarter of 2007, with a slowdown in performance being noted for most of the indicators. The number of companies reporting increased orders and sales (both domestic and overseas) had dropped slightly and the number of firms reporting an increase in orders was at its lowest level for almost two years.

Service sector confidence weakened last quarter, with the number of firms expecting increased turnover and profitability falling. The number of companies revising their investment plans upwards for both capital and training had fallen, as had the number reporting an increase in their workforce.

Adam said: “Last year was a very good one for businesses, but the outlook is less positive. We expect this year to be challenging for both manufacturers and service providers, but this survey does not reflect the beginning of a recession.”

More than 400 businesses responded to the Chamber’s survey.