A recent survey, CIPS/Markit purchasing managers’ index (PMI) highlighted growth contraction in August 2015. The index was down to 51.5 from the previous July figure of 51.9. The reading for employment growth also turned negative for the first time in 26 months, as larger manufacturers made cut backs, though small businesses continued to increase their staff levels. Exports also fell for the fifth month in a row, with many blaming the strength of the pound, weak sales in the Eurozone and the slowdown in China.
One of the largest independent business surveys in the UK is the British Chambers of Commerce Quarterly Economic Survey. The previous results for QES Q2 (March – May 2015) showed that the Norfolk results, whilst mixed, were demonstrating signs of cautious growth. In particular, Norfolk’s manufacturing export sales and orders were stronger and higher than the national results and employment in the Norfolk manufacturing sector also rose in comparison to the national results.
The fieldwork period for QES Quarter 3 is currently underway and is open until 14 September. If you have not already completed this survey, you can have your say now. It will be interesting to see the results of this survey (due to be published at the beginning of October) and see whether Norfolk’s manufacturers will continue to buck the national trend, or whether the unsettled climate in the Eurozone and the slow down in the Chinese economy will have an impact.
