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Business

Is the worst of the recession over?

By: KentOnline reporter multimediadesk@thekmgroup.co.uk

Published: 11:32, 22 May 2009

Kent in recession logo

The ravages of recession may be easing as the pace of manufacturing decline across Kent and the south east is expected to slow.

That is the upbeat conclusion from a survey of 575 manufacturers by the CBI, the employers organisation.

According to its monthly Industrial Trends survey for May, 17 per cent of the firms surveyed said they expect the volume of output to increase over the next three months, against 34 per cent who anticipate a fall.

The resulting balance – the difference between the percentage of manufacturers reporting an increase and those reporting a decrease – is a marked improvement on the previous month, and takes the measure back to where it was before the collapse of Lehman Brothers in September.

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CBI South East regional director Malcolm Hyde, based in Sevenoaks, said: "After scaling back production very sharply at the beginning of the year, manufacturers can see a glimmer at the end of the tunnel. They still expect manufacturing activity to fall, but at a much slower rate over the next few months.

"However, this was another tough month for firms, with orders at home and abroad still at very weak levels. With stock levels high relative to expected demand, manufacturers are likely to remain focused on running down their stocks further."

But demand for UK-made goods remains weak with only 10 per cent of firms reporting above normal total order books in May, while 66 per cent said they were below normal.

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