Confidence among manufacturing firms slumps
PUBLISHED: 07:57 12 November 2018 | UPDATED: 08:46 12 November 2018
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Manufacturing confidence has plummeted to its lowest level in more than a year, according to a new report.
A study by business advisers BDO LLP shows a “concerning turnaround” in the sector’s fortunes, as manufacturers find themselves at the sharp end of a general slowdown in global trade and a reluctance among continental European firms to source components from the UK as a result of Brexit.
Peter Hemington of BDO LLP said: “A lack of clarity on the shape of Britain’s future trading relationships has caused a general weakening of business optimism, but it is particularly concerning to see confidence in the manufacturing sector, which accounts for 8% of all jobs in the UK, descend to a 16-month low.
“The chancellor’s recent budget announcement to increase the annual investment allowance for two years will go some way to supporting small to medium sized businesses kick-start spending on fixed assets.
“However, finalising Brexit negotiations is the single most important action required to restore confidence in the British economy.”
A government spokesman said: “We are determined to ensure that the UK continues to be one of the most competitive locations in the world for advanced manufacturing.
“We have put forward a precise and credible plan for our future relationship with the EU.
“As part of this we have proposed a UK-EU free trade area underpinned by a common rule book on manufactured goods.
“We are confident of securing a good deal and look forward to continuing to engage with the EU Commission on our proposals.”