Today's manufacturing PMI data reflects positive growth; however, the sector faces considerable challenges. The government’s Industrial Strategy aims to support the sector, despite its lack of detail. Businesses are concerned about rising costs due to minimum wage increases and National Insurance hikes, leading to reduced headcounts and R&D investments. Business leaders have expressed the need for no further tax increases. The impact of post-Brexit changes requires urgent attention to trading relations with the EU to alleviate profitability issues for UK manufacturers.
The increase in today's manufacturing PMI data is positive news; however, the sector continues to face significant challenges.
Despite the lack of detail in the Industrial Strategy, the mere publication of it with a few key highlights should be enough to give manufacturing businesses hope to plan for the future.
Many respondents commented that the increase in minimum wage and the rise in employers' National Insurance had led to a reduction in headcount and a decrease in R&D investment.
For UK manufacturers, the trading relationship with the EU needed to be consulted and brought in as soon as possible, as post Brexit changes have had a significant impact on their profitability.
Collection
[
|
...
]