Uncertainty takes its toll as manufacturing exporters report weaker trading
Fresh fears for the UK’s manufacturing industry have been raised this morning, with exporters hit by mounting political uncertainty.
A majority of UK manufacturing exporters have reported a deterioration in both sales and orders over the last quarter, as indicators reflected a substantial drop compared to 2017 and 2018 levels.
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The quarterly international trade outlook for quarter three, released by British Chambers of Commerce and DHL today, has shown that indicators for exporting manufacturers have undergone large declines, with several key indicators for orders and cashflow now in negative territory.
The percentage balance of exporting manufacturers reporting an increase in export orders fell to –1 per cent, down from +9 in the previous quarter.
The balance of those reporting increased domestic orders fell to -4 per cent in quarter three, down from +8 per cent in the previous three months.
“On top of Brexit uncertainty and global trade tensions, election turbulence won’t be helping,” said BCC director general Adam Marshall.
He added: “Without urgent clarity around our future trading relationship with the EU, firms across the UK will increasingly struggle to fill order books, and jobs and prosperity in many of our communities could be at risk.
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Vice president of marketing at DHL Express, Shannon Diett, said: “This quarter’s report shows clearly that it continues to be a challenging environment for UK exporters.
Diett added: “Whether expanding to new markets within the EU or elsewhere in the world, diversifying the portfolio of countries in which you operate will help stabilise your business in the coming months and provide a future engine for growth. In this regard a number of non-traditional markets present a significant opportunity for UK exporters.”