EFF say recovery will be painfully slow

According to a leading employer’s organization in Britain, it will take a long time for British manufacturers to recover with a silent and painfully slow comeback expected to begin this year.

The EFF which includes members of technology, engineering, and manufacturing companies predicts that there will only be about a 1.2% growth this year among its members even though the pound has fallen slightly which should be an advantage.

Additionally, the EFF expects to see Britain’s GDP increase by .9% due to the effects of the global slowdown which will hinder British companies from full recovery.

The chief economist of the EFF, Lee Hopley, stated that while some companies will be able to take relief from the fact that the worst has passed other companies will start to feel the chill.

The news of the grim year came at the same time government figures were released that show industrial output is weak.  In November manufacturing stats showed a decline of about 5% compared with a year ago in November of 2008.  The largest fall was reflected in machinery and equipment which saw a loss of about 17%.

Economist at Barclays Capital, Simon Hayes, stated that the high cost of trying to keep jobs in the face of the economic downturn may be one reason why exporters are feeling pressure which in turn has reduced the profitability of the companies.

Hayes continued to say that companies may have held onto their employees due to the belief that demand will rise again.