Growth in the UK manufacturing sector reached a 10 month high in August after dipping significantly in June as a knee jerk reaction to the Brexit vote. The closely watched Markit/CIPS UK Manufacturing Purchasing Managers’ Index, showed that the resurgence was driven by a rebound in manufacturing output and incoming orders, with new business rising at its fastest rate this year for both domestic and overseas clients. Production was up across the board, with the consumer goods sector recording the strongest increase.
Whilst the fall in the value of the pound was the main factor supporting export growth by enabling manufacturers to be more competitive on global markets, it has also pushed up production costs, with inflation surging to a five year high.
The update caused the pound to increase 0.8% against the US dollar, with one analyst commenting that the figures showed the "Brexit brakes are off".
At Beavis Morgan, our specialist advisers to the manufacturing sector are able to assist with business growth and optimisation. Our Research & Development (R&D) tax credits team have also made a significant number of successful claims on behalf of clients in the manufacturing sector. The reliefs, essential for businesses to innovate and excel, can be extremely beneficial to those engaged in qualifying R&D.
For further information about how we can help you and your manufacturing business, or to arrange a no obligation preliminary meeting to discuss how your company could qualify under the R&D Scheme, please contact Steve Govey or your usual Beavis Morgan Partner.