Slowdown, Geopolitical Concerns Derail UK Manufacturers Confidence: Report

MOSCOW, January 5 (Sputnik) — Expectations for UK manufacturers in 2015 have decreased dramatically contrary to last year’s figures amid poorer predictions for the economy and high geopolitical risks, the fourth annual Adelmoire/EEF survey of executives’ views on the year ahead released Monday suggests.

“Manufacturers’ confidence at the beginning of last year was very high — one year on and, while still positive, it has very evidently eased back… What we are now seeing as we head into 2015 is a far more muted outlook, tempered by a backdrop of difficulties in the EU and wider geopolitical concerns,” Terry Scuoler, Chief Executive of EEF said as quoted on the company’s official website.

According to the survey, the number of those who expect economic conditions in the UK to worsen in 2015 has tripled from 5 percent in 2014 to 17 percent in 2015. Over the same period, the number of those who expect global economic conditions to deteriorate skyrocketed from 5 percent to 38 percent.

Almost six out of ten manufacturers questioned, cited geopolitical risks as their key concern for 2015. Another 45 percent expressed fears about rising input costs and 35 percent were concerned with significant shifts in exchange rates.

Senior manufacturing executives believe that sales prospects will be especially low in Europe and Middle East.

The Markit/CIPS purchasing managers’ index, also released Monday suggested that UK manufacturing hit three-month low in December and that growth in the construction sector was at its slowest for 17 months.