British manufacturing and service firms saw a modest upturn in business in the second quarter of 2003 but activity remains weaker than in most of 2002, an industry survey published today showed.
Manufacturing firms’ sales and order books both expanded slightly in April-June after dismal January to March figures, according to the British Chambers of Commerce’s quarterly survey of more than 5,700 companies.
Service firms saw orders inch up, but sales to the domestic market slipped slightly, the survey said.
‘I can’t see anything that would point to a healthy, sustainable recovery in the wealth creating sector of the UK economy’ said David Kern, economic advisor to the BCC. ‘The best we can expect is a shallow, below trend recovery,’ he added.
In the manufacturing sector, which has borne the brunt of the downturn in the global economy over the last three years, the net balance of sales to the domestic market rose seven points – but remained weaker than the whole of 2002.
Domestic orders rose one point but remained in negative territory. The net balance of employers expecting to increase employment over the next three months slipped slightly.
The service sector saw a slight fall in domestic sales and a slight increase in domestic orders.
Lack of confidence in an economic upturn held back investment. The balance of manufacturing firms planning to buy plant and machinery edged up slightly, but remains below the last three quarters of 2002.
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