This article is from the source 'guardian' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at https://www.theguardian.com/business/2019/apr/01/uk-manufacturers-brexit-stockpiling-eurozone-eu
The article has changed 3 times. There is an RSS feed of changes available.
| Version 0 | Version 1 |
|---|---|
| UK manufacturers buoyed by Brexit stockpiling as eurozone slumps | UK manufacturers buoyed by Brexit stockpiling as eurozone slumps |
| (about 3 hours later) | |
| Panic stockpiling by manufacturers ahead of a possible no-deal Brexit sent activity in the sector surging to a 13-month high in March, according to a major survey. | Panic stockpiling by manufacturers ahead of a possible no-deal Brexit sent activity in the sector surging to a 13-month high in March, according to a major survey. |
| Firms hoarded raw materials and finished goods at the fastest monthly rate of any G7 country since 1992 amid concerns that imports and exports will be held up at the UK border. | |
| The IHS Markit purchasing managers’ index (PMI) jumped to 55.1, the highest since February last year, with output, employment and new orders all rising at increased rates as manufacturers and their clients raced to cram “buffer stocks” into their warehouses. | The IHS Markit purchasing managers’ index (PMI) jumped to 55.1, the highest since February last year, with output, employment and new orders all rising at increased rates as manufacturers and their clients raced to cram “buffer stocks” into their warehouses. |
| EasyJet issues Brexit warning, as crisis turns UK into 'laughing stock' - business live | EasyJet issues Brexit warning, as crisis turns UK into 'laughing stock' - business live |
| The rise in UK output contrasted with a miserable month across the eurozone, which remained mired in recession after conditions deteriorated at the fastest rate in six years. | The rise in UK output contrasted with a miserable month across the eurozone, which remained mired in recession after conditions deteriorated at the fastest rate in six years. |
| Germany dragged down the eurozone PMI after falling to 44.1, an 80-month low. Italy also fell, along with France, which hovered around the 50 mark that separates contraction from expansion. | Germany dragged down the eurozone PMI after falling to 44.1, an 80-month low. Italy also fell, along with France, which hovered around the 50 mark that separates contraction from expansion. |
| The only optimistic note for European manufacturers was a surprise increase in China’s output, which pushed the PMI for the world’s second largest economy to 50.8. | The only optimistic note for European manufacturers was a surprise increase in China’s output, which pushed the PMI for the world’s second largest economy to 50.8. |
| Shares in London-listed mining companies nudged higher on the news and metal trading firm Glencore also benefited, while in Frankfurt the DAX rose 1.16% as traders became more optimistic about the sales of German cars and industrial equipment to China. | Shares in London-listed mining companies nudged higher on the news and metal trading firm Glencore also benefited, while in Frankfurt the DAX rose 1.16% as traders became more optimistic about the sales of German cars and industrial equipment to China. |
| The UK car manufacturing industry has also been hit by flagging sales to China. | The UK car manufacturing industry has also been hit by flagging sales to China. |
| Earlier this month, car firms said their anxiety over Brexit was “at fever pitch” after monthly production figures showed a 15% year-on-year drop in output in February – the ninth consecutive month in which British car manufacturing output has fallen. | Earlier this month, car firms said their anxiety over Brexit was “at fever pitch” after monthly production figures showed a 15% year-on-year drop in output in February – the ninth consecutive month in which British car manufacturing output has fallen. |
| Rob Dobson, a director at IHS Markit, said the jump in UK manufacturing activity was directly linked to firms stepping up their preparations for potential Brexit-related disruptions. | Rob Dobson, a director at IHS Markit, said the jump in UK manufacturing activity was directly linked to firms stepping up their preparations for potential Brexit-related disruptions. |
| But he warned: “The stock-building boost introduces a major headwind for demand, output and jobs growth moving forward. Manufacturers are already reporting concerns that future trends could be constrained as inventory positions across the economy are unwound. | But he warned: “The stock-building boost introduces a major headwind for demand, output and jobs growth moving forward. Manufacturers are already reporting concerns that future trends could be constrained as inventory positions across the economy are unwound. |
| “The survey is also picking up signs that EU companies are switching away from sourcing inputs from UK firms as Brexit approaches. It looks as if the impact of Brexit preparations, and any missed opportunities and investments during this sustained period of uncertainty, will reverberate through the manufacturing sector for some time to come.” | “The survey is also picking up signs that EU companies are switching away from sourcing inputs from UK firms as Brexit approaches. It looks as if the impact of Brexit preparations, and any missed opportunities and investments during this sustained period of uncertainty, will reverberate through the manufacturing sector for some time to come.” |
| The consultancy Capital Economics said its analysts were more circumspect about the impact of stockpiling. | The consultancy Capital Economics said its analysts were more circumspect about the impact of stockpiling. |
| It said: “We would warn against concluding that stock building is significantly supporting overall economic growth given there is little evidence of that in other figures such as imports. And even if it was, it would only be a temporary boost to activity. | It said: “We would warn against concluding that stock building is significantly supporting overall economic growth given there is little evidence of that in other figures such as imports. And even if it was, it would only be a temporary boost to activity. |
| “Nonetheless, considering the industrial contraction in the eurozone, UK manufacturing appears to be coping well.” | “Nonetheless, considering the industrial contraction in the eurozone, UK manufacturing appears to be coping well.” |
| Manufacturing sector | Manufacturing sector |
| Brexit | Brexit |
| news | news |
| Share on Facebook | Share on Facebook |
| Share on Twitter | Share on Twitter |
| Share via Email | Share via Email |
| Share on LinkedIn | Share on LinkedIn |
| Share on Pinterest | Share on Pinterest |
| Share on WhatsApp | Share on WhatsApp |
| Share on Messenger | Share on Messenger |
| Reuse this content | Reuse this content |