Economy may be turning up but investment still too low, says EEF

eefradley160bManufacturing and business organisations have given a cautious welcome to Chancellor of the Exchequer George Osborne’s contention today that the economy has turned the corner.

While the Chancellor argued that there were “tentative signs of a balanced, broad based and sustainable recovery” and suggested that the Labour Party had lost the economic argument, the manufacturers’ organisation EEF bemoaned a lack of overall strategy while the CBI urged “stronger levels of business investment and trade to rebalance the economy, so we must get behind smaller firms who are ambitious to export.”

While agreeing that business surveys suggested the outlook was improving and that the Chancellor was right to stress the scale of the challenge, EEF director of policy Steve Radley (pictured) said that business investment still down by 25% and manufacturing by 10% on where they were before the recession.

He continued: “Though the government has done more in the past 12 months to promote growth, we need to make sure that having turned the corner we don’t lose our way on the path to a better balanced economy. We still lack the overall strategy that will clearly set the direction for all Government departments to follow and, one which will send out a clear signal to potential investors.”

This material is protected by copyright Ken Hurst 2013.

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About Ken Hurst

Ken Hurst began his career as a journalist in London over 30 years ago, working on a range of publications before moving on to weekly newspaper production in the newly-independent Zambia of the 1970s. He returned to the UK where his work included spells on newspapers and magazines, before moving to head up Norwich Union’s corporate affairs division. In the 1990s he moved on to freelance, co-own and publish the B2B audio magazine Sound and front the BBC radio Yesterday’s Papers programme. There followed six years as Business Editor at Britain’s biggest selling regional daily newspaper, The Eastern Daily Press, where he led an award-winning team and for whom he still writes a weekly socio/political comment column. Subsequently, he was Group Editorial Director at CBM, responsible for its UK and US magazine output – including The Manufacturer magazine – research-driven industry reports and live events content. Currently he is Contributing Editor at Works Management magazine publisher Findlay Media and Chairman of the consumer publishing house TNT Multimedia Ltd. He is a Fellow of the Royal Society of Arts and of the British Association of Communicators in Business.
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