The latest CIPS UK Manufacturing PMI has reported a slowdown in growth, the lowest growth since early 2013. KPMG's UK Head of Industrial Manufacturing, Stephen Cooper, said:
"This slowdown in UK manufacturing growth is disappointing, considering the recent steady improvements in previous months of this year. The strengthening of the pound relative to the Euro, while good for summer holiday travellers, will not be good for UK manufacturers as it makes UK manufactured goods more expensive for those who import them. As 40 per cent of UK exports are still exported to the Eurozone, any disturbance downwards in that market will impact negatively on UK manufacturing.
"Interestingly the Eurozone has shown positive results in the past month where growth was registered in all countries except Greece. This may change in next month's Eurozone PMI if the uncertainty in the Eurozone with the current unresolved Greek debt issue continues.
"The largest global manufacturing countries of China and the USA have also shown a continued contraction in manufacturing over recent months due to weaker export demand for both countries goods. This, combined with the Eurozone issue, does not give a good signal for the coming months for global manufacturing, and UK manufactures will be watching events closely."