Moorfields comments on further decline in the UK manufacturing and construction sectors
The UK manufacturing sector contracted once again in March, with poor weather and dwindling demand from the eurozone singled out as the key factors in the latest decline.
A decline in orders from both domestic and overseas customers has led to both large and small firms having no choice other than to scale back on production, including those who are struggling already.
Worrying index results
The March slump followed a poor February for the sector in the UK. The Markit/CIPS Purchasing Managers’ Index fell below 50, the level which is used to separate expansion from contraction.
The Index is used as one of the key indicators for how specific sectors are performing overall and is widely respected by several leading economists.
The same index also placed the construction sector on a similarly critical list, giving that particular sector a mark of 46.8 in February and 47.2 in March.
The magical 50 mark
April is set to be a key month for struggling companies in both sectors, as a third consecutive month below the 50 mark would set further alarm bells ringing.
It is hardly a secret that the construction industry has been affected more than most by the recent economic crisis and its current status will come as a surprise to few.
However, placed alongside the gradual decline of the manufacturing sector, it spells bad news for the short-term outlook of numerous smaller companies that potentially don’t have access to the same resources as many of their larger contemporaries.
Contacting the insolvency specialists
A corporate insolvency specialist such as Moorfields can assist business leaders, financial directors and stakeholders to deliver pro-active solutions for their business, as well as advice on how to adapt to the ever-changing economic landscape.
This could be particularly useful given how uncertain the immediate future could be for companies across the UK in 2013.
If you would like to have a free no obligation chat with one of our advisers please call us on 0207 186 1143.