UK manufacturers may be hit by uncertainty over future trading relationship with the EU - EY ITEM Club comments
01 July 2016
- Manufacturing PMI sees surprise rise in June…
- …offering further evidence that the economy saw little disruption in the run-up to the EU referendum
Martin Beck, senior economic advisor to EY ITEM Club, comments:
“Following months of stagnation, June’s manufacturing output was the strongest in five months pointing to some revival for the sector.
“However, the vast majority of responses were received before the 23rd June. As a result, the survey offers no guidance on the extent of any post-referendum fallout for manufacturing. It is likely that the makers will be hit by uncertainty over what the UK’s future trading relationship with the EU will be.
“That said, for a period possibly extending into several years, nothing fundamental is likely change in terms of market access. And the sizeable weakening in the pound since the EU referendum result should prove to be a net gain for the sector.
“Only time will tell which of these competing forces will prevail.”