In Focus Commercial Credit
work from home for a large proportion of 2021.
Expectations for 2021 While still well above the 50 mark that signals output is expected to rise over the next 12 months, the growth expectations of four UK manufacturing sectors weakened during December – chemicals (64.7 in December compared with 70 in November), metals and mining (69 compared with 75), beverages and food (72.2 compared with 77.4) and automobiles and auto parts (73.5 compared with 73.7).
Inflation Signs of inflationary pressures across the UK economy contributed to these sectors’ weaker output expectations for the next 12 months. Supply chain delays and the imbalance
of container freight activity during 2020 led to a steep rise in shipping costs during December. Global raw material shortages also meant
that UK manufacturers faced the sharpest rise in input prices for two-and-a-half years. Both factors are expected to increase prices
February 2021
charged by UK goods producers, which could negatively impact the competitiveness of domestic manufacturers in overseas markets during 2021.
Lockdown While this survey was conducted before the latest national lockdown was announced, it is still worth highlighting the vaccine- induced rebound in business confidence across the economy. It is clear that, for many firms, this
represents the defining influence for their prospects in the year ahead. December’s data also highlighted the
impact Covid-19 continues to have on global supply chains. Many manufacturers benefited from a
boost in overseas sales ahead of the Brexit trade deadline, but raw material shortages, rising input costs and distribution problems are making the sector’s road to recovery more challenging.
Challenging Growth expectations for the next 12 months help us chart the trajectory of the UK economy’s recovery from Covid-19.
www.CCRMagazine.com
While still well above the 50 mark that signals output is expected to rise over the next 12 months, the growth expectations of four UK manufacturing sectors weakened during December – chemicals (64.7 in December compared with 70 in November), metals and mining (69 compared with 75), beverages and food (72.2 compared with 77.4) and automobiles and auto parts (73.5 compared with 73.7)
However, we cannot forget the incredibly challenging conditions businesses are currently facing during lockdown. Our immediate priority must be to
support UK firms as they continue to demonstrate resilience and innovation in the face of adversity. CCR
19
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52