The latest IHS Markit/CIPS survey has revealed that manufacturing in Britain is slowing as a result of Brexit uncertainty and a stronger pound.
According to the study, the purchasing manager’s index (PMI), which measures growth in the sector, showed that the sector slipped to 55.2 in February (figures above 50 indicate growth).
Meanwhile, the data shows that output growth had slowed dramatically to a three-monthly rate of 0.4 per cent at the start of 2018, compared to 1.3 per cent during the final three months of 2017.
Reviewing the figures, Dave Atkinson of Lloyds Bank Commercial Banking, said: “Recent [official] figures show sector productivity is increasing, although there is still some way to go before the UK catches up to its G7 counterparts,” he said.
“But manufacturers are taking steps to make this happen by investing in automation and exploring the opportunities presented by Industry 4.0.
“Many are using specialist asset finance facilities to invest in equipment, protecting their working capital which can be used to support growth opportunities.”
Bank of England figures show a steep increase in borrowing by manufacturers for investment – going against many other sectors’ funding plans. This maintains a trend in the sector that started last April, according to IHS Markit.
Looking to the Continent for a comparison, factory output growth slipped across the Eurozone, with the IHS Markit report showing PMI falling to 58.6 in February from a high of 59.6 in the previous year. 
If you are concerned about the effect that Brexit is having on growth in manufacturing or across any sectors speak to Grunberg & Co’s Brexit Professionals, for up to the minute advice on the latest issues.