In the latest instalment of the FT manufacturing barometer, 62 companies across Britain were asked how they are coping with the economic downturn. They were asked to give scores to questions covering sales, orders, investment intentions and employment. A statistical analysis of the response translates into a reading of -1.1 for the barometer for October 2009, still negative but up from the score in July of -2.4, and better again than the figure in May of -2.8. The score in May was the lowest the barometer has reached since it was started in November 2008. The sequence of readings fits in with evidence from broader economic surveys that a slow recovery has started in manufacturing, but with many companies continuing to experience severe difficulties.

Participating companies, which cover a range of sectors, and stay broadly the same between different surveys, have agreed to give the FT regular updates, allowing us to provide a unique indicator of business conditions and sentiment. The current barometer features all but three of the 65 companies that have taken part since it started.