Almost three times as many manufacturing firms have taken hits to the bottom line over the last six months compared with those that have seen profits rise, according to Santander Corporate Banking.
The bank’s research found profits are down for 59% and up for 20% of manufacturing companies. The statistics for all types of business are 50% down and 21% up.
However, manufacturers are more confident than other industries about their prospects for the first six months of 2010. The Santander Corporate Banking Business Confidence Index reveals that 78% of manufacturing company owners are confident in the prospects of their own business for the first half of 2010, slightly more than the 74% average recorded for all types of business.
Almost one in 10 (9%) firms are very confident while 69% are confident about the future with 22% not very confident and 2% not at all confident.
Firms with turnovers of £25 million plus are seemingly faring better than smaller firms at the moment – 81% of the larger firms say they are either ‘very confident’ or ‘confident’ about their prospects and report average profit rises in the past six months of 14.1%.
The average fall in manufacturing profits is 15.5% while the average rise is 15.4%.
Five most confident business sectors
Five least confident business sectors
1 Construction/building services