Political and economic uncertainty knocks manufacturing sector

According to statistics taken from the latest Purchasing Managers' Index (PMI), there has been a slight slowdown in growth towards the end of the second quarter. Figures in June showed reduced growth in new business in both domestic and export markets.

Commenting on the data, Mike Thornton, head of manufacturing at RSM, said:

‘This month we saw the first signs of a wobble within the manufacturing sector as the manufacturing PMI dropped two points compared to last month. Although this is a change from recent highs, it is not wholly unexpected and could be, in part, a fall out from political uncertainty surrounding the general election and the start of the Brexit negotiation.The month on month comparison does highlight a small drop but it’s worth mentioning that a 54.3 rate is still the best registered for three years and the sector continues to grow, which is positive news overall.'    

‘The only certainty is uncertainty in today’s market and manufacturers seem to be adapting well to this. In a dynamic market manufacturers need to stay on top of business risk, including political developments, to ensure they can react to any potential threats, or indeed, opportunities.’