Published By : 07 Sep 2015 | Published By : QYRESEARCH
The economic slowdown in China had an impact more far-fetched than we could imagine. The manufacturers in the UK are already facing the brunt of the adverse economic conditions in China, which hit their exports and output bad. Due to the mounting pressure on the country’s export earnings, a leading business group finally took the decision on Monday to slash its outlook for the sector.
Sales in the domestic consumer market in the U.K. and the country’s booming automobile production could do only little to make up for the losses incurred due to declining overseas demand, as told by EEF manufacturers’ organization. Manufacturers engaged in the production of mechanical equipment have been particularly hit hard as waning orders from China coincides with weakening demand from the oil and gas sector, which is itself impacted by the plunging oil prices.
The trade groups in the United Kingdom are halving the growth forecasts for the manufacturing sector this year to reach 0.7% from 1.5%, citing enhanced risks that also include the renewed tensions in the Eurozone and downturn in emerging markets, such as that of China.
Lee Hopley, chief economist in EEF said that while the overall UK economy is set to achieve a “solid: growth this year, manufacturers in the nation have to remain content with fragile Eurozone growth, lower oil price, and now the weakening confidence of global investors due to turmoil in China.
She added that while the growth data for UK continued to show a steady progress, the manufacturing sector of the country will have to remain contend with “a rollercoaster of risks” owing to major economic turmoil faced in the rest of the world.
Such gloomy outlook of the manufacturing sector witnessed by the country this year is a sign of declining production and orders, as per EEF’s latest business survey.