UK’s Manufacturing Activity Sees Slight Improvement as Lockdown Eases
The manufacturing sector in Britain appears to be showing signs of recovery as the sector reopens gradually after several weeks of lockdown
According to a recent report by BDO, the manufacturing sector in Britain appears to be showing signs of recovery as the sector reopens gradually after several weeks of lockdown. In the latest BDO Business Trends report, the Manufacturing Output Index climbed 16.58 points higher to touch 69.55 for the month of May.
This points to signs of improvement after manufacturers had to close down during March and April. However, the index continues to remain close to record lows and still below the 95-threshold, a reading above which indicates positive growth in the sector.
Kaley Crossthwaite, of BDO LLP, observes, “While the jump in manufacturing output offers a glimmer of hope, early signs point to this being a long road to recovery. Output remains drastically below where it would be in ordinary times, but the latest readings suggest we have passed the rock bottom of this crisis.”
The Manufacturing Optimism Index also registered a slight increase of 4.32 points in May, indicating a slight improvement in the business outlook among manufacturers for the near future. However, the outlook is expected to remain bleak as a result of businesses trying to figure out how to return to normal levels of operations while following social distancing norms, even as Brexit comes back into focus once again.
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