MHA says improved confidence in the manufacturing sector

Ginni Cooper, a partner at MHA, an accountancy and advisory firm with an office in Kendal, was speaking after new data showed the S&P Global UK Manufacturing Purchasing Managers' Index had hit a two-year high at 52.1.

She said the Bank of England's decision to cut interest rates along with the PMI data hinted at a more optimistic future.

Ms Cooper, a manufacturing sector advisor, spoke on the increase in the manufacturing workforce - a first in nearly two years - hoping for a visible impact on the investment in the sector following the interest rate being cut to 5 percent.

Ms Cooper said: “While the problems for the manufacturing industry are well documented, it seems as though we are turning a corner. 

"Output and orders have both grown and, most significantly, there has been an increase in the workforce for the first time in almost two years.
 
“Following the Bank of England’s decision to cut interest rates to five per cent on Thursday, there is also likely to be further movement from the sector in terms of investment. 
 
“However, the manufacturing industry is eagerly awaiting further announcements on the new government’s industrial strategy which is desperately required for growth and to encourage investment into the UK."
 
Ms Cooper highlighted a ‘growing consensus’ that the National Wealth Fund could be what manufacturers need to start investing, but that it would depend on the details in the fine print.
 
“The shortage of skills has been a perennial Achilles heel for manufacturers for years," she added.

"The Apprenticeship Levy that was introduced in 2017 has not had the desired impact. The problem has been exacerbated by preventing the freedom of movement of workers."
 
Ms Cooper also believes that a key challenge is improving the trading relationship with the rest of Europe and that significant supply chain problems are still in place post-Brexit.