Category Archives: Manufacturing empoyment agencies

Recruitment agencies would have kept a close eye on the report issued by the Office for National Statistics today. The main news was that the contraction in the economy in the last quarter of 2010 was not 5% as previously thought but 6%.

The report also broke down further areas, showing that business investment was down 3.2%, other services was down 3.9% and distribution services was down by 6.8%. On the upside though manufacturing recruitment agencies would be buoyant with an increase of 18.3% in manufacturing and food, drink and tobacco was up by 10%.

Putting this all into perspective is that we have a fragile economy, one that could dip again or begin to grow. The one factor that we must all bear in mind when looking at these figures is the timing, the last quarter of 2010 was one of the worst weather conditions the country had for a long time, with many companies unable to operate at full capacity and probably changed many delivery dates to January, therefore would not be surprised if 1^st quarter of 2011 is in fact better than expected. I suppose we will just have to wait and see.

Manufacturing employment agencies would have been happy to hear that the Manufacturing sector is enjoying a strong recovery from one of the worst recessions.

Figures published by the Chartered Institute for Purchasing and Supply (CIPS) showed that it’s purchasing managers’ index for May was 58 (anything over 50 represents growth). This means it has held its 15 month high figure and also when this figure is compared to February last year, when it showed 35.2, it shows the growth that has occurred over the past 15 months.

This increase is largely due to the fact that we have had a sharp reduction in interest rates and the weakening of the pound. The slight concern of all this is that the Eurozone which are where we are mainly exporting to, are now beginning to suffer as well, with the weakening of the Euro. This could then have ramifications on our export business. Therefore we do have to take all this good news in this sector with a bit of caution and hope that the rise does continue and for recruitment agencies the need for more staff continues as well.