UK/EU Markit PMI Manufacturing figures - PwC's manufacturing leader comments

Cara Haffey, PwC's UK industrial manufacturing leader, commented on the Markit PMI Manufacturing figures released today:

"The latest PMI figures are undoubtedly disappointing for the manufacturing community, particular in relation to new orders. Customers seem to be emptying out their supply stores rather than re-ordering and re-basing their stock levels, which clearly helps them better manage their working capital and protect cash in the short term, but manufacturers are suffering from these 'stock downs'.

"Businesses are feeling the pressure from weak export demands as well as other economic, financial and geo-political headwinds across global markets. Our innovation and expertise in high quality engineered products remains world-class and the sector needs help to stimulate the exporting of these world-class products and services.

"Eurozone PMI data suggests that this is not a uniquely UK problem, with Eurozone manufacturers struggling in both domestic and export markets. The pace of growth in new Eurozone orders hit a 15-month low in May, selling prices fell for the ninth consecutive month, while their manufacturing exports grew at the slowest pace since January 2015.

"It's vital that in the months ahead, productivity within these challenging market conditions remains a major focus - those who can crack that nut will reap greater rewards in the long term. "

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