Brexit Britain is ‘leading the way’ in Europe’s manufacturing recovery, according to GB News Economics and Business Editor Liam Halligan.
But he erred on the side of caution as while UK manufacturing has returned to growth for the first time since July 2022, Halligan believes ‘we are not out of the woods yet’.
“Clearly price pressures are easing”, he said.
“So-called wholesale inflation is also easing, the cost of the inputs that firms use when they make the goods and services they sell to us. Those prices are also easing.
Liam Halligan has heralded a boost for British manufacturing
GB NEWS
“That’s why manufacturers have started to see their order books grow here in the UK, you’re starting to see more demand and manufacturers taking on more employees and buying new capital equipment to try and expand their output.
“We’re by no means out of the woods, the UK economy is flat at best.
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British manufacturers have received a boost
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Liam Halligan spoke about British manufacturing on GB News
GB NEWS
“We were in a recession at the back end of last year, let’s not excite ourselves here.
“It’s clear that the UK economy is now showing some better numbers, not just in terms of inflation but also in terms of manufacturing.
“We are still a global top 10 manufacturer. It still employs hundreds of thousands of people across the UK.
“It’s a very important part of Great Britain PLC and it’s good to see in these preliminary numbers some positivity.”
He added: “The Purchasing Managers Index (PMI) survey, the headline measure of inflation outside of the official measures is suggesting the UK manufacturing sector is growing at a time when the Eurozone’s manufacturing sector is not.
“We want the Eurozone to grow, we want Europe to have a strong economy because we trade so much with Europe.
“But for now at least, Brexit Britain is leading the way in Europe when it comes to manufacturing recovery.”
A closely-watched survey painted a positive picture for Britain with both output and new orders increasing in March, while business optimism also hit an 11-month high.
S&P Global/CIPS UK’s manufacturing purchasing managers index score rose to a better-than-expected 50.3 last month, up from 47.5 in February.
This represents growth, with any figure above 50 doing so. March was the first time this has happened since July 2022, 20 months ago.