British manufacturers are “potentially stuck in the doldrums” as demand slows and optimism for the future shows signs of faltering, analysts have warned.


Since the Brexit referendum back in 2016, manufacturing companies and factory workers have suffered from sluggish demand and productivity.  Trade talks with Brussels have progressed slower than expected, with the Government offering little to the business community to qualm anxieties and concerns. As a result, the business landscape has become shrouded with uncertainty, with British factories suffering the most.

Britain’s poor productivity performance has already concerned economists and business owners alike, with previous efforts proving ineffective. Unfortunately, now it seems low demand and plummeting business confidence could inflict even further damage upon the manufacturing sector.

A new purchasing managers index (PMI) compiled by IHS Markit, has revealed a slowdown in new orders from overseas. Furthermore, while companies are still hiring staff to increase output, many have cut the pace of recruitment in recent months. This slower growth illustrates the damage that Brexit inflicted upon the country’s prospects, with international economies losing interest in Britain’s domestic products.

If Britain is to reach the Brexit deadline next year, its competitive edge must be encouraged and sustained. Innovative projects and bold advancements are clear ways to boost the country’s image to rival economies. At the Credit Protection Association, our debt recovery service has been utilised by our Members to purchase new technology and equipment. These have either gone on to boost productivity and business output, as well as drive the innovation of the sector.

The PMI does not indicate a strong recovery is on the cards.

Rob Dobson, director at IHS Markit, said: “This is a position that cannot be sustained far beyond the immediate horizon. The trend in demand will need to stage a much firmer rebound if a further slowdown in output growth is to be avoided.”

He said that the likelihood of such a revival remained in some doubt, given that the June survey showed business optimism had fallen to a seven-month low.

“With industry potentially stuck in the doldrums, the UK economy will need to look to other sectors if GDP growth is to match expectations in the latter half of the year.”

These new figures from IHS Markit's PMI come amid fears of a slowing economy. Gross domestic product (GDP) growth in the first three months of the year was revised up to 0.2 per cent last week. 

The manufacturing sector needs a boost. British factories are not working fast enough and are grappling with low demand and even murkier business confidence. Brexit has hurt the sector’s self-assurance and left employees and business owners unsure of its future prospects. This is something that can be remedied, and business owners can reignite enthusiasm and confidence within the business.
At the Credit Protection Association, we always encourage the ambition and fortitude of our Members. Our debt recovery services provide financial stability, ensuring our Members have the cash to purchase new technology and equipment.
Particularly within factories, new equipment can ease the daily grind for employees and encourage work output and work ethic. Innovation and technological advancements are also easy ways to grab the attention of international rivals, highlighting the country’s strong position in the global tech race. This should hopefully repair the British image and encourage international demand in domestic products.

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