• Privacy policy
  • T&C’s
  • About Us
    • FAQ
    • Meet the Team
  • Contact us
TLE ONLINE SHOP!
  • TLE
  • News
  • Politics
  • Business
  • Sport
  • Opinion
  • Elevenses
  • Entertainment
    • All Entertainment
    • Film
    • Lifestyle
      • Horoscopes
    • Lottery Results
      • Lotto
      • Thunderball
      • Set For Life
      • EuroMillions
  • Food
    • All Food
    • Recipes
  • Property
  • Travel
  • Tech/Auto
  • JOBS
No Result
View All Result
The London Economic
SUPPORT THE LONDON ECONOMIC
NEWSLETTER
  • TLE
  • News
  • Politics
  • Business
  • Sport
  • Opinion
  • Elevenses
  • Entertainment
    • All Entertainment
    • Film
    • Lifestyle
      • Horoscopes
    • Lottery Results
      • Lotto
      • Thunderball
      • Set For Life
      • EuroMillions
  • Food
    • All Food
    • Recipes
  • Property
  • Travel
  • Tech/Auto
  • JOBS
No Result
View All Result
The London Economic
No Result
View All Result
Home News

Brexit disruption slows growth in ‘stalling’ UK manufacturing sector

The UK's manufacturing sector has been battered by Brexit and coronavirus.

Henry Goodwin by Henry Goodwin
2021-02-01 11:30
in News
FacebookTwitterLinkedinEmailWhatsapp

Growth in the UK’s manufacturing sector fell to a three-month low due to Brexit supply chain disruptions caused in the first month since Britain formally severed ties with Brussels, according to new data.

The closely-followed IHS Markit / CIPS Purchasing Managers’ Index (PMI) hit 54.1 in January, down from a three-year high in December of 57.5 where many manufacturers stockpiled goods over fears of a no-deal Brexit. Any score above 50 is seen as a sector in growth.

Manufacturing output increased for the eighth successive month in January – however, the rate of expansion slowed as new orders fell due to a drop in new export business.

Companies said the national lockdown, the end of the Brexit transition period, client closures and renewed uncertainty at the start of the year all contributed to the fall in new orders.

Some managers also said they saw EU-based clients had brought forward purchases in December to avoid expected disruption in the post-transition period.

Manufacturers in the consumer goods sector saw the weakest performance in January, with steep drops in output and new orders.

The intermediate and investment categories – larger scale manufacturing for long-term projects – saw continued expansion.

RelatedPosts

Watch: ‘Moving to tears’ as EU flag brought into Ukranian Parliament ‘to stay’

Does Sue Perkins’ NSFW comment about ‘the government’ chime with you?

Watch: Turkish president scares PM but is it due to poem Johnson wrote about him?

Metropolitan Police officers sacked over ‘abhorrent and discriminatory’ messages

Manufacturing employment rose for the first time in a year during January, however, with companies reporting this was to combat rising levels of work-in-hand at several firms.

Raw material shortages, transport delays and increased costs, pushed input price inflation – the cost to manufacturers – to a four-year high in January, which were passed onto clients.

Rob Dobson, director at IHS Markit, which compiles the survey, said: “Whereas many countries are seeing manufacturers provide a much-needed support to economic growth as the service sector is hit by Covid-19, the UK’s manufacturing sector has come close to stalling.

“A mixture of harsher Covid-19 restrictions and Brexit led to near-record supply-chain disruptions, lower exports and increased costs.

“The impact was felt most at consumer goods producers, who reported steep falls in output and new orders. There were also early signs that smaller companies were being hit harder by the tougher operating environment than medium- and larger-scale producers.”

He added that companies are hopeful the restrictions will ease as the vaccine rollout continues, but said the speed of recovery remains uncertain.

Duncan Brock, group director at the Chartered Institute of Procurement & Supply (CIPS), added: “The start of the year was a damp squib as the index dropped back to last October’s levels, and new order levels eased, in sharp contrast to the sustained momentum in the sector’s recovery at the end of the pandemic year.

“Primarily, it was SMEs (Small and Medium Enterprises) who bore the brunt of the downturn, as they struggled to cope with increased demands in paperwork, border controls and the effects of port disruption where corporates with larger resources were able to tap into current stocks and find workarounds to these obstacles.”

Related: Paul Dacre set to become new Ofcom chief with remit to target BBC

Tags: Brexit

Since you are here

Since you are here, we wanted to ask for your help.

Journalism in Britain is under threat. The government is becoming increasingly authoritarian and our media is run by a handful of billionaires, most of whom reside overseas and all of them have strong political allegiances and financial motivations.

Our mission is to hold the powerful to account. It is vital that free media is allowed to exist to expose hypocrisy, corruption, wrongdoing and abuse of power. But we can't do it without you.

If you can afford to contribute a small donation to the site it will help us to continue our work in the best interests of the public. We only ask you to donate what you can afford, with an option to cancel your subscription at any point.

To donate or subscribe to The London Economic, click here.

The TLE shop is also now open, with all profits going to supporting our work.

The shop can be found here.

You can also SUBSCRIBE TO OUR NEWSLETTER .

Subscribe to our Newsletter

View our  Privacy Policy and Terms & Conditions

Trending on TLE

  • All
  • trending
Abdollah

‘Rescue us’: Afghan teacher begs UK to help him escape Taliban

CHOMSKY: “If Corbyn had been elected, Britain would be pursuing a much more sane course”

What If We Got Rid Of Prisons?

More from TLE

Generation Vain

‘Skip breakfast if you want to lose weight’ suggests new study

Has fussy eating created our food waste crisis?

Corbyn demands Assange is not extradited to the US

‘Achilles’ heel’ of pancreatic cancer has been identified

Leeds United sign former Benfica winger Costa from Wolves

By strongarming Atlantia, Conte government riles foreign investors

Most children living in poverty have working parent

Australia trade deal set to include another controversial policy

The UK’s First “Rage Cage” Opened

JOBS

FIND MORE JOBS

About Us

TheLondonEconomic.com – Open, accessible and accountable news, sport, culture and lifestyle.

Read more

© 2019 thelondoneconomic.com - TLE, International House, 24 Holborn Viaduct, London EC1A 2BN. All Rights Reserved.




No Result
View All Result
  • Home
  • News
  • Politics
  • Business
  • Sport
  • Entertainment
  • Lifestyle
  • Food
  • Travel
  • JOBS
  • More…
    • Elevenses
    • Opinion
    • Property
    • Tech & Auto
  • About Us
    • Meet the Team
    • Privacy policy
  • Contact us

© 2019 thelondoneconomic.com - TLE, International House, 24 Holborn Viaduct, London EC1A 2BN. All Rights Reserved.