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Commenting on the MPC decision to keep rates on hold, Jane Lodge, Manufacturing Industry leader at Deloitte said: “After last month’s surprise hike in rates, the decision to hold rates will come as welcome news to UK manufacturers.

“With the sector already showing signs of slowdown in the wake of increasing interest rates, manufacturers will be pleased that rates remain on hold. However, with the expectation of a rise to 5.5% there will be concerns for 2007.”

The comments come on the back of new analysis of manufacturing administration figures by Deloitte which shows manufacturing businesses were one of the worst affected sectors last year, seeing a 15% rise in company administrations. This increase comes despite the manufacturing industry already having the higher number of administrations in 2005 than any other industry group.

The manufacturing industry posted the largest number of administrations in both 2005 and 2006, with 597 and 689 respectively - a year on year increase of over 15%.

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About the research
The data is compiled from administrations and receiverships in 2005 and 2006, which are legally obliged to be advertised in the London Gazette. Companies in administration or receivership typically continue to operate but are overseen by a legally appointed insolvency practitioner who endeavours to sell the business as a going concern. Trading in administration can sometimes last for several months but normally takes only a few weeks before a buyer is found or a business is closed down. The administration process has become a much more common phenomenon since the introduction of the Enterprise Act 2002, which encourages business rescue, thus increasing the prospect of an improved return to creditors, preventing operational closures and minimising staff redundancies. While administrations and receiverships are similar in nature, they differ from a liquidation which is essentially the process of winding up a company which is no longer commercially viable.

About Deloitte
In this press release references to Deloitte are references to Deloitte & Touche LLP which is among the country’s leading professional services firms, providing audit, tax, consulting and corporate finance services. Deloitte & Touche LLP is the United Kingdom member firm of Deloitte Touche Tohmatsu (‘DTT’), a Swiss Verein whose member firms are separate and independent legal entities. Neither DTT nor any of its member firms has any liability for each other’s omissions. Services are provided by member firms or their subsidiaries and not by DTT. Deloitte & Touche LLP is authorised and regulated by the Financial Services Authority. The information contained in this press release is correct at the time of going to press.