Euler Hermes comments: UK Manufacturing PMI – September

01.10.2017

 

Shannon Murphy, manufacturing specialist and assistant head risk underwriter at Euler Hermes, said:

Manufacturers across a range of sectors, particularly steel and oil and gas, are cashing in on sterling’s fall in the last year while the UK continues to reap the benefits of the Single Market.

However, businesses are not committing to long term investments and the flip side of the weaker pound is that increased input costs are weighing down on margins.

The promise of a transition deal has provided reassurance, but manufacturers are calling for negotiations to progress quickly on trade and EU workers’ rights to settle the nerves on the availability of qualified overseas employees and new investment.

Payment terms need close monitoring through the supply chain as order books strengthen. But thinning margins will continue to pose a challenge to manufacturers and business leaders must keep a close eye on the financial health of their customers.

 

 

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