Manufacturing Industry Hits Four Year Low With ‘Gloomy’ Output Prediction
Businesses urged to consider exporting as a drop in the value of the pound presents overseas opportunities
Optimism among the UK’s manufacturing industry has slumped to a four-year low, as businesses prepare for life outside the EU – a report by BDO LLP has claimed.
The Business Trends Report which surveyed over 4,000 enterprises revealed a ‘gloomy’ outlook for the sector with its optimism sub-index dropping down to 81.0 – with a score of 95 indicating contraction.
General business confidence has also fallen to its lowest in three years, however the monthly drop is less severe than previous reports – suggesting the UK’s decision to leave the European Union has made less of a negative impact than first predicted.
Despite the negative trend, it’s suggested that the drop in value of the pound presents an opportunity for businesses to increase exports with overseas companies now able to purchase at a lower than usual price.
Peter Hemington, partner at BDO LLP, said:
“Brexit has compounded the continuing slowdown of the UK economy but there is opportunity as well as challenge ahead for UK businesses.
“The Bank of England’s decision to lower interest rates is a step in the right direction. We now need a concerted effort from government to lay the foundations for future growth. That means taking advantage of cheap borrowing costs to invest in UK infrastructure, encouraging prosperity across the regions and improving productivity.”
Does your business export? Here’s how you can take advantage of Brexit.