Manufacturing Firms Will Be Taking A Hard Look At Accounts As A Result Of “Brexit”

Whatever the views on whether Britain should be in or out of the EU, the impact the uncertainty is having on the UK manufacturing sector is proving to be particularly severe.

According to the latest statistics, UK factory growth has hit its lowest point for 34 months which a setback for a sector which had been showing signs of green shoots and recovery.

With the vote not due to take place for a few months yet, the situation could get worse before it gets better. As a result of the slowdown in manufacturing, firms are already being forced to cut jobs for the second month running and this is likely to have an impact on the recent good news surrounding jobs in the UK economy.

One bit of good news for manufacturers who rely on exports is the fall in the value of the pound. This will aid competitiveness with foreign firms who will have previously benefited from the strength of the pound against the Euro.

Mike Rigby, head of manufacturing at Barclays said, “Amidst the headwinds of slowing global growth, uncertainty over a Brexit and skills shortages in the industry comes the recent depreciation in sterling which may just provide the jump-start that manufacturing exporters need to boost exports and put a spark back into the sector’s performance.”