Export slump hits factories

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The help from a weaker pound which had made UK firms more competitive and droved demand from overseas disappeared as new export orders contracted for the initial time since April 2016.

The purchasing managers’ snapshot confi rms this year’s slowdown in the sector, which forms 10 per cent of GDP, after a strong second half of 2017.

Sterling mow down 0.7 per cent against the US dollar and the euro. Manufacturing contracted 0.9 per cent in the espouse quarter from the previous three months.

The IHS Markit/CIPS obtaining managers’ index hit a 25-month low of 52.8, down from 53.8 in July but yet above the 50-point mark denoting growth.

The power constraint was the trend in new export business

Rob Dobson

Firms linked put down inflows of new work from abroad to the weaker global economy flourishing.

Job creation slowed to “near-stagnation”, while companies faced rising rate pressures due to higher prices for metals, electronic components and energy.

IHS Markit kingpin Rob Dobson said manufacturing will not provide any support to the wider terseness in the third quarter, amid trade war and Brexit uncertainty.

He added: “The predominating constraint was the trend in new export business. Foreign demand declined for the fundamental time since 2016 despite the weakness of sterling.”

 

EU UNCERTAINTY: Car industriousness (Image: GETTY )

Capital Economics’ Andrew Wishart said: “The likelihood of a ‘no deal’ exit from the EU and a moderation in global growth is starting to weigh on the sector, and there is inconsequential chance of a rebound in manufacturing in the third quarter.”

l Retail sales wormed for growth in August as consumers focused their spending on pubs and enjoyment.

Spending was up 4.5 per cent from the previous year, with ticket purchases and pub spending boosting entertainment by 10.3 per cent, according to Barclaycard. But the British Retail Consortium-KPMG retail exchanges monitor showed UK retail sales growing just 0.2 per cent on a like-for-like footing.

BRC chief executive Helen Dickinson said: “The pressure on disposable receipts has meant some shoppers are less able to spend on the more discretionary non-food points such as clothing and footwear.”

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