Prepare for manufacturing insolvencies, warns analyst

www.moneynews.co.uk > Other > Prepare for manufacturing insolvencies, warns analyst

Prepare for manufacturing insolvencies, warns analyst

A leading credit insurance and management provider has today warned that manufacturing insolvencies are likely to grow during 2004.

The latest Economic Barometer from Atradius suggests that despite the upturn in the sector in recent months, many British firms are still feeling the after-effects of the long slump and might not survive.

Although insolvencies actually fell last year as against 2002, the firm puts this down to prior rationalisation rather than the conditions of 2003 itself.

Jon Lindsay, Atradius's director of UK Ireland, warned, "There are a large number of smaller companies supplying the manufacturing and construction sector and if they get hit with a bad debt from one of their customers, they might not be able to survive."

Nonetheless, Atradius anticipates growth for the UK economy as a whole - although this could be compromised by expected monetary tightening at the Bank of England.

Higher interest rates are expected to affect manufacturing and construction in particular, and Atradius is urging companies in these sectors to seek insurance against bad debts during 2004.

However, Atradius predicts that the US will see a marked improvement over the first half of 2004, which will in turn boost trade in Europe and Asia.

The Economic Barometer also suggests that Asia is also benefiting from the massive growth in China over the last few years.

Related News : Other
	Government accounts are getting better
	Public sector pay rising faster than the private sector
	Monti slaps Microsoft with record fine
	Phone bills confuse consumers
	Lib Dems vote against council tax
	Prescott claims councils are listening to tax warnings
	Fewer services, more tax
	Consumers warned about energy salesmen
	Dad's work at home worth £14,500
	Massive jackpots for Euro lottery