UK manufacturers buoyed by Brexit stockpiling as eurozone slumps

[nitpicker]

https://www.theguardian.com/business/2019/apr/01/uk-manufacturers-brexit-stockpiling-eurozone-eu

UK manufacturers buoyed by Brexit stockpiling as eurozone slumps

Phillip Inman

Mon 1 Apr 2019 10.40 BST Last modified on Mon 1 Apr 2019 11.00 BST

Panic stockpiling by manufacturers ahead of a possible no-deal Brexit sent activity in the sector surging to a 13-month high in March, according to a major survey.

Firms hoarded raw materials and finished goods at the fastest monthly rate of any G7 country since 1992 amid concerns that checks at the UK border would hit supplies of raw materials and exports of finished goods.

The IHS Markit purchasing managers’ index (PMI) jumped to 55.1, the highest since February last year, with output, employment and new orders all rising at increased rates as manufacturers and their clients raced to cram “buffer stocks” into their warehouses.
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Rob Dobson, a director at IHS Markit, said the jump in UK manufacturing activity was directly linked to firms stepping up their preparations for potential Brexit-related disruptions.

But he warned: “The stock-building boost introduces a major headwind for demand, output and jobs growth moving forward. Manufacturers are already reporting concerns that future trends could be constrained as inventory positions across the economy are unwound.

“The survey is also picking up signs that EU companies are switching away from sourcing inputs from UK firms as Brexit approaches. It looks as if the impact of Brexit preparations, and any missed opportunities and investments during this sustained period of uncertainty, will reverberate through the manufacturing sector for some time to come.”
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