UK manufacturing update: New data paints a mixed picture

New industry data has painted a mixed picture across the UK manufacturing industry as it deals with ongoing economic uncertainty.

However, the number of consumer manufacturing liquidations have increased in quarter three by 17%, reflecting the complex economic and political trading conditions.

The report also included analysis of payment performance data. Although overall the proportion of late payments are reducing, the latest analysis suggests that less than a third of payments are being made on time by machinery manufacturing firms (31%) and 36% across consumer manufacturing. The sector falls behind the national average in terms of prompt payments.

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Commenting on the report, Markus Kuger, Chief Economist at Dun & Bradstreet said: “Similar to other sectors, continued uncertainty is adding to the challenges and complexities faced by UK manufacturers.

“Our latest report found that there has been a 17% rise in the number of corporate liquidations in consumer manufacturing in quarter three of 2019, and payment performance continues to lag behind the national average (31% vs. 44%).

“The Purchasing Managers’ Index (PMI) for the sector indicates contraction and the latest figures signal deteriorating production levels.

“Our latest forecast is that real GDP growth will expand by around 1.3% in 2020 (based on a managed Brexit). This is the lowest growth since the financial crisis and adds to pressure on firms in the manufacturing sector as we go into next year.”

Dun & Bradstreet www.dnb.co.uk