Midlands financier Bob Hale has backed calls for the Bank of England to hold interest rates steady this week amid evidence that manufacturing has gone into retreat again.
Mr Hale, the chairman of RSM Robson Rhodes' national manufacturing and technology group, said rising raw material and energy costs meant there was a "real need" for stability as well as for the Government help the sector with tax breaks.
His views follow a quarterly survey by the Engineering Employers' Federation (EEF) that suggested while the current "soft patch" for manufacturing may be
temporary, it is vital to avoid further cost increases or any measures that might damage confidence.
According to Mr Hale, Midland manufacturers are remaining reasonably positive about the future.
"Many companies have already gone-to-the-wall, but those left are leaner, and I feel overall, despite the relentless pressure from low cost economies, the outlook for the sector is quite positive and things are moving in the right direction by continuing to concentrate more on improved technology and investment, added value and developing skills."
