The UK’s growth rate halved to 0.3% in the first quarter of 2015. One industry that has been hit particularly hard was that of manufacturing, which saw a drop in the reported Purchasing Managers Index (‘PMI’) from 54.0 in March to 51.9 in April. This was the biggest recorded fall since February 2013. Markit, the preparers of the report, said ‘Today’s UK PMI delivered less than positive news on the health of the manufacturing sector’.
This was partly attributed to the strength of the Pound against the Euro affecting UK competitiveness in the Eurozone. In recent months, the Pound has steadily gained value against the Euro. In March it was at its highest level in seven years making UK goods comparatively more expensive. This has caused a fall in UK manufacturing exports. Additionally, investment in the market has recently been cut due to the uncertainty surrounding the outcome of the general election.
If your manufacturing business has been adversely affected by the strong pound then it may be appropriate to seek advice on the turnaround or insolvency options available to you. One of our experienced practitioners would be more than happy to arrange a meeting, initially free of charge. Contact us.