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Brexit knocks manufacturers’ confidence – report

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Brexit knocks manufacturers’ confidence – report

July 31, 2016
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Confidence among manufacturers has slumped since the UK’s vote to leave the European Union, a report indicates.

Manufacturers’ average confidence score dropped to 5.24 after the referendum from 6.37 before the vote, the report from EEF, a manufacturing lobby group, and accountancy firm BDO showed.

The biggest fall in confidence was in London and the South East.

But the region remained the most confident, with a score of 5.7 out of 10.

The least confident regions were the East Midlands and and North West, which both had a score of 5.0, the report said.

“The Brexit vote has put the manufacturing sector’s recovery in jeopardy,” said Lee Hopley, chief economist at EEF. “The growth path is now uncertain in all regions.”

The report said that 25% of companies in the North West had yet to find any business opportunities from Brexit, while 59% were concerned about weaker demand prospects.

Manufacturers in Yorkshire and Humber were the most optimistic about opportunities that the UK’s exit from the EU may present.

A quarter of respondents in the region were positive about lower regulatory burden and increased demand, the report said.

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