CIPS: Recovery remains weak

Date: 9th August 2011

Small business owners operating in a range of sectors across the UK could be among those interested in the recent comments of one industry body regarding the economy.

The Chartered Institute of Purchasing and Supply (CIPS) has warned that despite positive market forecasts, the recovery remains weak.

Andrew Coulters, director of business solutions at the organisation, said activity has declined, which has led to a loss of jobs.

"Contraction has sparked worries throughout the manufacturing sector as the PMI's dipped dramatically to 49.1 points - this was a big surprise as forecasts had predicted slightly higher results," he commented.

Mr Coulters claimed that activity in the sector has "tailed off" due to a weak domestic market.

"The slowdown has impacted employment, prompting the first job cuts in over a year. However, supply chain disruption has eased, which was a main cause for concern in the last few months. Recovery is still looking relatively fragile," he added.

Posted by Jacob Williams