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Flat lining costs and a strong pound have driven Britain’s manufacturing firms to the biggest decline in optimism since March 2013.
The continued slow performance of the Eurozone and the strong pound has hit exporters particularly hard, according to the latest Business Trends Report by BDO. Alongside this, weak business investment has restricted investment and slowed orders for manufacturing firms, meaning less demand for manufactured goods.
The BDO’s Manufacturing Optimism Index currently is above the long-term average but only due to the sector’s weak performance since the financial crisis.
“It is vital that the manufacturing sector reaps the benefits from Government plans and receives the help it needs to thrive,” said BDO partner Peter Hemington in the report.
“Manufacturing is a key sector for economic growth, so specific support could help boost the economy as a whole. A measure such as reducing national insurance for manufacturers taking on new employees could create up to 90,000 jobs each year, and boost GDP by over £3.5 billion.”
While costs are generally flat, smaller manufacturers often do not realise that substantially cheaper business energy is available. Those that are aware lack the time to compare energy suppliers and switch.
SwitchmyBusiness.com offers a hassle free quote and switch in just 20 minutes – our offers are no-obligation. To find out why we are the top rated compare business energy site, fill out the form on the top right of this page call 0330 0100 251.
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