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The UK’s manufacturing sector has seen a decline in orders domestically and from across the Eurozone and the world, according to the latest Markit/CIPs index.
As a consequence of declining orders, the Manufacturing Purchasing Managers’ Index (PMI) fell from 47.8 in October to 47.6 in November, the lowest level it has been at since June 2009.
A reading of 50 or above indicates growth, therefore this month’s reading suggests the UK’s manufacturing sector is really suffering from the eurozone debt crisis and low levels of business confidence both domestically and internationally.
Senior Economist for Markit, Rob Dobson, felt that times were now extremely hard for manufacturers, “Output is falling at the fastest rate since early 2009 as order inflows from domestic and overseas markets continue to deteriorate”.
There was one piece of good news for manufacturers, as input prices fell in November for the first time since July 2009, which allows profit margins to be raised and potentially increase levels of turnover.
Flexible funding solutions
As the eurozone continues to stumble and the UK’s manufacturers shoulder the brunt of the consequences, an external funding solution may be required to keep your business running profitably.
And with bank overdrafts and loans increasingly hard to access, it is no wonder that manufacturers may feel that spending time to source out external funding is a waste of time and will prove ineffective.
However, invoice finance could be just what you need, to unlock the cash you may have tied up in invoices. Being independent of the main banks and with no shareholder dividends to pay, we are able to truly understand our clients’ businesses and provide them with appropriate, flexible solutions.
Why not find out more about the funding solutions we provide to manufacturing businesses or give us a call today to speak to one of our team of experts.