The latest government statistics make glum reading for the engineering industry as the impact of global slowdown continues to take affect. The new figures are likely to prompt further debate over the crisis faced by British industry.

Total engineering turnover for the three months to June 2001 decreased by 7·2% compared to the previous three months, due to a decrease of 9·5% in export turnover and 5·3% in home turnover. Comparing the figures to last year sees a decrease of 3·5%.

The Office of National Statistics revealed which areas of engineering are being hit the hardest with machinery and equipment engineering seeing a decrease of 4·0% over the three months, as the sector bore the brunt of a 7% downturn in export.

The electrical and optical equipment industries saw a massive 8·4% decrease in turnover for the period as a result of a 10·4% export and 6·7% home turnover fall. Orders were also 5·9% lower than the last three months and export orders were down 10·2% in total compared to last year.

A more in-depth analysis of the current state of the air-conditioning market is available in our new regular feature Market Watch on page16.