Economic slowdown is starting to bite

Date published: 30/07/2008

Manufacturers and service providers are starting to experience more challenging times, according to the latest economic survey from Greater Manchester Chamber.

While UK manufacturing sales have remained stable, orders have decreased for the second quarter in a row. Exporters are faring better, as sales and orders are still growing.

In the service sector sales are holding up for UK and export, but orders have decreased in both areas compared with the first quarter of this year.

Both sectors reported worsening cash-flow positions and manufacturers have also started to reduce their workforce slightly, but expect it to be stable for the upcoming quarter.

Ilona Krohn, the principal economic adviser at Greater Manchester Chamber, said: “The biggest area for concern remains inflation.”