Steady profits reported by UK manufacturing companies

Manufacturing companies’ profits remained steady in the third quarter of last year. The Office for National Statistics said the rate of return for firms in the sector was estimated at 9.1% – the same as the previous quarter and higher than the average of 7% for the whole of 2003. Other data has suggested the manufacturing sector is weakening, although analysts said the steady profitability could be more a result of job cuts. A survey released yesterday by the Chartered Institute of Purchasing and Supply showed nearly 13% of manufacturing firms said they had cut staffing levels to offset rising costs. The Profitability of UK Companies study showed a slight dip in profitability among services companies in the third quarter. Firms in the sector recorded a rate of return of 15%, down from 15.8% the previous quarter. Overall profitability among private non-finance companies was 13.6%, compared with 13.7% in the previous quarter. The manufacturing, service construction and power supply sectors recorded combined returns of 12.6%, down from 12.8% in the second quarter. References: EGi News 05/01/05