UK Manufacturing Output Shrinks For First Time In Nearly Three Years
11 February 2016
The UK’s manufacturing sector contracted in January according to the latest Business Trends report from accountancy and advisory firm, BDO.
In a sign of decreasing global confidence, the BDO manufacturing sub-index dropped to 94.7: the 95 level separates growth and decline. This is the first time in over two and a half years (May 2013) that UK manufacturing output has shrunk.
In comparison, UK services output continues to be well above the long term trend reaching 103.2 in January’s survey - indicating a growing imbalance between UK manufacturing and UK services and a worrying sign for the Government and their objective to rebalance growth.
BDO partner, Peter Hemington said:
“These figures show that the UK needs to act now to support our manufacturing industry. The government must do more to encourage investment and help the sector to grow.
“The government’s plans to encourage a more balanced economy are clearly right, but need to be accompanied by far more action. For instance, incentives to invest and plan for future success should be increased significantly.”