UK Manufacturing hit by Chinese turmoil
The economic problems faced by China have ramped up the pressure on the UK manufacturing sector.
Unfortunately for us Brits, the boom in domestic consumer markets and car production have not been enough to stem the tide. A drop in overseas demand for our own products has hit UK manufacturers hard, and this has led to positive forecasts being slashed by experts.
The manufacturers' organisation EEF has warned that those constructing mechanical equipment will be hit hardest, as orders from abroad dwindle amid lower demand from the oil and gas sectors, not to mention a declining crude oil price.
China is the market that is currently in crisis.
With its investors lacking in confidence, imports and exports have stalled leaving the country stagnating. EEF Chief Economist Lee Hopley claimed that while the UK economy was looking solid for the remainder on 2015, manufacturers were set to continue with their struggles caused by poor euro zone performance and lowered global investor confidence.
He said "While UK data has continued to point to solid growth, UK manufacturing is having to contend with a rollercoaster of risks from the rest of the world, and the white-knuckle ride is starting to take its toll."
In a poll of 442 UK manufacturers, exports had fallen to a six-year low in the past three months.
Thankfully, there may be light at the end of the tunnel - more than a third of companies in the UK reported an increase in demand from Europe, the UK's biggest export market.
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