Contributed by RSM
1/08/2019 - RSM
RSM, a leading audit, tax and consulting firm, have put forward their thoughts from the Markit/CIP PMI manufacturing survey.
Mike Thornton, head of Manufacturing at RSM said: No deterioration in the PMI index this month may seem like a positive, but last month it hit a 76-month low, so the latest statistics just compound the downturn.
‘In addition, the economic climate has changed yet again. This week we’ve seen UK car production statistics showing a 20 per cent fall in the last six months due to lack of investment and Sterling has slumped due to fears around the prospect of a no-deal Brexit. This also sparked a warning from Vauxhall highlighting that they could move production from Ellesmere Port to a plant in southern Europe in the event of a no-deal Brexit – highlighting serious economic risks to UK manufacturing caused by geo-political events.
‘Whether it’s due to Brexit fatigue; an unwinding of stock from the original Brexit deadline; or a delay due to the Tory leadership race, we haven’t seen stockpiling levels increase as yet. However, now we have a new Prime Minister in place and a no-deal Brexit seems more likely, we expect to see a sharp increase in stockpiling in the next three months.’
All articles on this news site are submitted by registered contributors of SuffolkWire. Find out how to subscribe and submit your stories here »