Tuesday, October 23, 2012

Manufacturing in the UK on the Rise in 2012

The manufacturing industry inthe UK has been in a bit of a slump, but according to the figures that came out this summer, we may be on the road to recovery. Or at least we can see the decline easing up. If all of this holds true, we can hope that the Bank of England will hold off on announcing increases to the quantitative easing programme that's worth some £375bn and hold the rates steady.

The financial picture since the beginning of the year has not been a pretty one, but seems to be on the mend. With reports of modest increases in new work from UK customers, the new export orders are also looking a little better. While investment goods such as factory equipment declined, producers of consumer goods are noticing a steady and solid rise in output.

Does this breathe of optimism mean that it will be followed by an imminent and sustained recovery? That remains to be seen. Hopefully, overall domestic and foreign demand will pick up and shake off the lackluster months that started off 2012. How much of the UK's financial woes can be blamed on the downturn of the Eurozone? Not to mention a softer international economic growth. That remains to be seen. Many countries in the Eurozone are tightening their belts with stricter fiscal policies that limit the purchasing power once enjoyed by consumers.

The good news for the UK is that the manufacturing decline seems to have stopped in its tracks, making room for fiscal improvement and a more positive mood. What with the phenomenal events that took place on our doorstep this year, citizens of the UK have good reason to hope for the year 2012 to end with a bang.