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Manufacturing confidence plummets to six-year low, survey finds

Stockpiling of goods has ‘artificially inflated’ growth in recent months, said business advisers

Alan Jones
Monday 10 June 2019 08:41 BST
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In contrast, optimism in the services sector increased last month
In contrast, optimism in the services sector increased last month

Optimism among manufacturing firms has slumped to its lowest level in six years, research suggests.

Stockpiling of goods has "artificially inflated" growth in recent months, said business advisers BDO LLP.

Vacancies are falling and wage growth is easing, although headline figures for the labour market remain strong, said the report.

In contrast, optimism in the services sector increased last month, the report added.

Peter Hemington of BDO LLP said: "This month's data is mixed, with sentiment in the services sector making a strong rebound after the granting of the UK's Brexit extension until October.

"However, the manufacturing industry is set to be particularly badly affected over the next few months as it becomes clear that Brexit contingency planning artificially inflated growth at the start of 2019.

"This malaise will be exacerbated by increasing concerns that a no-deal scenario has been thrown back into play, an outcome which UK businesses are warning could have calamitous consequences."

The report was based on surveys of more than 4,000 companies.

PA

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