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UK manufacturing started to slow down in June, falling to its lowest rate in 21 months, according to a Markit survey.
The Markit/Cips manufacturing purchasing managers’ index dropped down to 51.3, 0.7 down on May’s revised figure of 52. A figure above 50 indicates growth. The drop occurred as new orders declined and domestic demand fell.
Although the messages from this survey were mainly negative, production, export orders and employment were all still rising, albeit at a lower rate than earlier this year. It is the domestic market where the concerns are strongest, as spending cuts kick in.
Manufacturing companies in the UK often experience cash flow crunches when there is a drop in production rate and manufacturers have to purchase raw materials and pay staff long before they have sold the finished product. Although spending cuts in the UK are slowing orders domestically and overheads may be eating into your profit, there is money to be made across Europe and the World! Why not take advantage of better demand abroad?
Manufacturers with our finance facilities have been given the money (and indeed the confidence to go with this) to be able to focus on expanding their customer base across the UK and the world, developing a whole host of new clientele in the process.
If you’re a manufacturing business and would like to discuss how invoice finance can benefit your business, please get in touch with us today.