European customers are "abandoning" UK firms as manufacturing figures sink

Signs that European customers are “abandoning” UK firms are starting to show after British manufacturing recorded the steepest downturn in almost 3 years.

Following an earlier Brexit stockpiling boom at the start of the entire year May figures dipped significantly for UK manufacturers with new orders drying up.

Make UK – formerly known as the EEF – said the downturn shows investment plans happen to be “paralysed” by Brexit uncertainty in the second quarter of the season, warning that the ‘no deal’ would equate to “economic lunacy”.

The warnings happen to be sounded as the IHS Markit/CIPS UK Manufacturing Purchasing Managers' Index (PMI) fell to 49.4 from 53.1 in April, its minimum since July 2021 and worse than all forecasts inside a Reuters poll of economists which had pointed to a fall to 52.0.

Make UK’s leader, Stephen Phipson, warned aspects of the manufacturing industry would be pushed over the edge if the uncertainty continued.

He said: “Captured there was clear evidence that industry was on steroids as companies stockpiled.

“Underneath, however, now there is growing evidence of European companies abandoning UK supply chains, whilst Asian customers baulk in the unknown of the items may exist as the UK leaves trade agreements which operate under EU rules.

“With this picture it might be the height of monetary lunacy to accept UK from the EU without any deal in place. The race towards the bottom within the interests of party ideology needs to stop otherwise you will see huge price to pay.”