Weaker currency not helping exports

Posted on: September 5th, 2019 by PhilM

Make UK’s Q3 Manufacturing Outlook survey comes on the back of the latest PMI data earlier this week and shows all indicators have weakened significantly, with investment and domestic orders in particular turning negative.

The survey also shows that a weaker currency is providing no solace, contrary to claims from some politicians and commentators, with export orders down despite prices falling. This indicates foreign customers are not buying British goods even though they are 6% cheaper than this time last year.

Key findings from the report include:

  • All survey indicators weaken significantly
  • Domestic orders turn negative
  • Export orders down despite prices falling,
  • No evidence stockpiling has begun in Q3 ahead of ‘no deal’
  • Investment intentions turn negative for the first time since EU referendum
  • Decline in recruitment continues
  • Manufacturing forecast cut to 0.1% in 2019, 0.2% in 2020

The full report is downloadable from the Make UK website here

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