Decline in UK manufacturing sentiment: manufacturers become more cautious
1 November 2018
Commenting on the IHS Markit/CIPS UK Manufacturing PMI, which went from 53.6 in September to 51.1 in October, Duncan Johnston, UK manufacturing industry leader at Deloitte, said:
“The decline in the October PMI data reflects manufacturers’ concerns about global trade tensions and the impact of Brexit on the sector. In line with the results of the latest CBI Industrial Trends survey, both new domestic and export orders are declining. For the first time in more than two years, employment in the sector also fell, with the reduction mostly seen in larger businesses. Manufacturers are becoming noticeably more cautious about the prospects for the sector, resulting in an impact on hiring and investment decisions.
“The survey responses were gathered before this week’s budget, which provided a welcome boost for manufacturers. An announcement that has received little attention, was the £121m of additional funding for the Made Smarter campaign. This will see the government continue to invest in technological innovation and the transformation of the UK manufacturing industry, which is central to its long term future. It is encouraging to see the government allocating resourcing to new technologies such as the Internet of Things.”
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