Home Brexit Brexit sends shockwaves across the manufacturing sector

Brexit sends shockwaves across the manufacturing sector

by LLB Reporter
1st Jul 19 10:57 am

The UK’s manufacturing sector has plummeted to the worst level in six years in June as stockpiling for Brexit sent shockwaves through the industry.

The IHS Markit/CIPS UK manufacturing purchasing managers’ index (PMI) reading showed 48 last month, compared to 49.4 in May.

For the second month in a row the figure has been below the marker of 50 which indicates growth. The PMI report said that high levels of stock has led to “scaling back of output and new order intakes.”

Rob Dobson, director at IHS Markit, which compiles the survey said, “The downturn in UK manufacturing deepened during June, as the impact of firms unwinding stockpiles built before the original Brexit date continued to reverberate through the sector and exacerbate weak demand.”

Duncan Brock, group director at the Chartered Institute of Procurement & Supply said, “The sector’s strength is slowly slipping away, deprived of the oxygen of a reduction in Brexit uncertainty and an associated return of confidence to the marketplace.

“All the signs from the manufacturing sector point to another decline next month unless someone pulls a rabbit out of the Brexit hat.”

 

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