Latest News Headlines
Commercial Credit News
|Comment - tough times ahead for manufacturing|
|Friday, 11 December 2015|
Commenting on the UK’s manufacturing sector, Ana Boata; European Economist, Euler Hermes, said: “Manufacturing output has contracted since Q1 2015 and remains -7% below the Q1 2008 peak. The first Q4 reading does not point to a much better outlook as output contracted by -0.1% year on year in October. Indeed, although above the long-term average since 2014, capacity utilisation rates fell below this level in Q4 2015 (to 80.4 from 82.6).
“Although financing conditions remain accommodative, anticipation of a rise in Bank of England key interest rates in Q2-Q3 2016 is exerting upside pressure on sterling and remains an important drag on competitiveness (notably compared with the Euro).
“The Manufacturing PMI deteriorated in November, but remained in expansionary territory. The survey shows continuing downside pressures on selling prices and this is putting pressure on company turnover and profitability. In contrast, the services sector (80% of value added) is recovering strongly, mainly financial services (+15% above the pre-crisis peak).
“We expect GDP growth will slow to +2.1% in 2016 (+2.4% in 2015) and to +1.9% in 2017. Brexit fears weigh on growth prospects as investment decisions may be delayed by increasing uncertainties.”
Forums International Ltd
Attendance at your first meeting is free of charge, and please quote reference 'CCR2016' to receive the special 10% discount off of your first annual subscription.
Find out more here.
The latest edition of CCR Magazine, the leading editorial publication in the UK credit industry, is out.
CCR is the premier magazine for consumer and credit professionals. It provides an independent voice to the industry, breaking major news stories and running in-depth features.
As a magazine, it works with and campaigns on behalf of the credit industry to promote its importance as a centre of potential profit and business development to the wider business world.
Providing information and analysis for thousands of senior credit professionals worldwide, every quarter.
GTS Media Ltd
81 Cambridge Road
Registered in England No: 05483197