Global manufacturing is still adjusting to recent disruptions in the sector, according to Dun & Bradstreet’s latest Q2 UK Industry report.
The company expects slowdowns in fixed investment and manufacturing to continue into 2020, despite services sectors and job markets remaining stable. The report found that macroeconomic tensions between the US and China have continued to impact manufacturing performance on a global scale. Private consumption in the US had 4.3% growth quarter-on-quarter in contrast with an 8.0% year-on-year fall in Chinese goods imports between May and June.
The manufacturing sector has also seen a minimal increase in its prompt payments this quarter of 0.9 percentage points, with only 27.9% of all bills paid on time in the machinery manufacturing sector. Positively however, a total of seven out of 14 sectors recorded a decrease in the number of corporate liquidations in Q2. Machinery manufacturing saw a 15% drop quarter-on-quarter, reversing a comparable increase that was seen in Q1.
Markus Kuger, Chief Economist at Dun & Bradstreet said: “Given the uncertainty in manufacturing, due to the ongoing tensions between the US and China, industry leaders are still adjusting to its disruption on global trade. While last year emission scandal was the key disruptor in the sector, the unpredictability of the trade war has been the biggest problem this year for manufacturers. Despite the small increase in prompt payments for machine manufacturing our data shows that manufacturers are still struggling to adapt to the tough conditions they are working in. Continued uncertainty around the trade war, as well as the upcoming Brexit deadline, diminishes the chances of improvement in global manufacturing growth in the next quarter which will depend on stable, global financial conditions.”