Manufacturing profits suffer in 2007

03-07-2007

Manufacturing profits suffer in 2007
Britain's manufacturing sector saw its profitability almost halve during the first quarter of 2007.

Manufacturing companies' net rate of return for the opening three months of the year was 5.3 per cent, down from the 9.8 per cent profits reported for the fourth quarter of 2006.

The slip, recorded in figures released today by the Office for National Statistics (ONS), is reflected further by the average net rate of return for 2006. At 7.7 per cent, this surpasses this year's first-quarter performance.

By contrast the service sector saw its profitability increase to 21.1 per cent from 20.6 per cent in the October-December 2006 period.

Overall, private non-financial corporations saw their net rate of return fall by 0.1 per cent to 15.1 per cent. But in recent years improvements have been noted – between 2005 and 2006 profitability rose by 0.4 per cent to 14.5 per cent.

Recent indications suggest the UK economy looks likely to continue to expand, but businesses are becoming more and more pessimistic about their future prospects.

The current raft of interest rate hikes and growing inconsistencies of shortening deficits and falls in manufacturing output are contributing to "jittery" feelings among UK companies, the most recent Lloyds TSB business barometer shows.


Bookmark with:
Bookmark with: Digg Digg Bookmark with: Del.icio.us Delicious Bookmark with: Reddit Reddit Bookmark with: StumbleUpon StumbleUpon Bookmark with: Google Google Bookmark with: Technorati Technorati Bookmark with: Netvouz Netvouz

Latest News:

Search News
News Front Page
Accountancy / Tax
Advertising / PR
Armed Forces
Automotive
Aviation / Aerospace
Banking / Finance
Charities / Voluntary
Childcare / Youth
Construction / Property
Customer Services
Education / Training / Teaching
Emergency Services
Engineering / Electronics
Entertainment / TV / Theatre
Graduate Roles
Health / Beauty
Hotel / Catering / Restaurants
HR / Recruitment
Insurance / Pensions
International / Overseas
IT / Internet
Legal
Management / Business
Manufacturing / Industry
Media / New Media / Creative
Medical / Healthcare
Pharmaceutical Industry
Public Sector
Retail / Wholesale
Sales / Purchasing / Marketing
Science / Technology
Secretarial / PA / Admin
Skilled / Semi-skilled Manual
Telecommunications
Transport / Logistics
Travel / Tourism / Leisure