It is reported that UK manufacturing continues to struggle. This is due, in part, to continued supply chain difficulties. The S&P Global/CIPS UK manufacturing PMI survey shows a slight reduction in the rate of decline. The sector remains, however, below the contraction threshold. Manufacturers are adopting a cost-cautious approach. This is leading to cutbacks in purchasing and stock holdings.
Rob Dobson, director at S&P Global Market Intelligence, notes the widespread struggle across all UK manufacturing sub-industries. The 11th consecutive month of manufacturing production decline is attributed to weaker levels of new work and supply chain delays. As we all know, this is leading to disruption in the Red Sea route to the Suez Canal. The result has been to cause longer lead times. Inevitably, this has led to increased costs and slowed production rates, not just in the UK, but throughout Europe and beyond. This, in turn has been a contributory factor to recent inflation.
iBOSS Comment:
This is bad news for an economy that urgently needs to improve its overall economic performance and its trade balance in particular. If supply chain problems are limiting the growth of your business or, even worse, threatening its existence, then call Phil Jones on 07876 503 830. If your problem is finance/cashflow for the business , then call Peter Douglas on 07770 866955. We will be happy to provide a free consultation on your options.