Reed Cavendish Wealth Management - UK Factory Output Keeps Pace in June
TAIPEI CITY, Taiwan, July 3, 2018 (Newswire.com) - UK manufacturing activity maintained a solid pace of expansion last month, but analysts at Reed Cavendish Wealth Management say concerns over global trade and Brexit had a negative impact on confidence which fell to its lowest point this year.
Reed Cavendish Wealth Management analysts say the IHS Markit/CIPS UK Manufacturing Purchasing Managers’ Index (PMI) increased slightly from 54.3 in May to 54.4 in June, which was more than the predicted 54.0 and higher than the point that separates contraction and growth.
However, Reed Cavendish Wealth Management analysts say June ended the slowest quarter for UK factory activity in 18 months and the outlook for the sector which makes up 10 percent of Britain’s economic output is bleak.
Sentiment dipped to its lowest level in 2018 as manufacturing company heads worried about growing cost pressures, the possibility of heightened trade levies, the value of the pound, possible future trade tariffs and Brexit which is now less than a year away.
The figures echoed a survey by a leading financial institution that revealed business confidence had also fallen to its lowest level in 2018.
Reed Cavendish Wealth Management analysts say recent data revealed that the economic slowdown seen towards the beginning of this year was not as bad as initially estimated but business and consumer sentiment points to a mixed bag for the second quarter.
Bank of England policymakers deciding on the next interest rate hike have been eager to highlight more positive numbers but Reed Cavendish Wealth Management analysts say that the shift in manufacturing activity since the beginning of this year is cause for concern, turning promising growth from last year to some of the lowest rates of expansion seen in the past 18 months.
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Source: Reed Cavendish Wealth Management