Business confidence in the UK fell marginally in the first quarter of 2017, but was bolstered by a strong performance in the manufacturing sector.
According to the latest Chartered Institute of Credit Management (CICM) Credit Managers Index (CMI), manufacturing posted a 1.5 point rise in the first three months of this year, compared to the final quarter of 2016, putting it at an all-time high of 62.7.
However, the strong performance by the manufacturing sector was pegged back in the overall index by a fall in the services sector, which dropped 1.6 points. Overall, the CMI closed at 59.2 at the end of March, a 0.6 point decline.
This is still only the seventh time that the index has been above 59 points though, so despite the small drop things are still looking positive for the UK’s economy.
Chief executive of the CICM Philip King said that while the results are encouraging, they shouldn’t lead to overconfidence.
“This is especially so with negotiations for Brexit and the upcoming General Election, which could, and probably will, see increasing currency fluctuations,” he stated.
With business growth continuing in the UK’s manufacturing sector, there could be greater demand for toll processing and other chemical-related products.
Brexit – and specifically how negotiations pan out regarding the free movement of people – is likely to be of particular concern to those running businesses in the manufacturing sector given that a recent ONS survey found that 11 per cent of those working in the industry are EU nationals.