Manufacturing 'should be govt's focus'
Feb 02 2009
The government should channel more support towards the manufacturing industries rather than retail, according to an expert.
Michael Baxter, economist at financial analyst Defaqto, claims the UK has placed too high a significance on retail and suggests the fact that firms are going bust is an 'unfortunate yet very necessary' restructuring of the UK economy.
He adds: 'Theoretically, we need to have less emphasis on retail and more emphasis on manufacturing - so if manufacturing companies go bust, that is [the] opposite of what the country needs.'
Last week, the government took steps to offer increased support to the industry through a £2 billion package to free up lending to the automotive industry.
In addition, the CIPS/Markit UK Manufacturing Purchasing Managers' Index (PMI), released today, explains that the sector continues to suffer from declining rates of output, new orders and employment, as a result of reduced global demand and the credit freeze.
The study also reveals January's PMI has a rating of 35.8, which is an increase on the previous two months but still the third weakest figure in the survey's 17-year history.
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