Eurozone Crisis Draining Business Confidence, Says KPMG
John Leech, head of KPMG’s automotive practice comments on the monthly Markit/CIPS UK manufacturing purchasing managers’ index (PMI). The data shows that UK manufacturing PMI rose to 52.1 in January and eurozone’s manufacturing sector contracted for the sixth month in a row in January:
“The latest PMI reveals that the continuing eurozone crisis is draining confidence and demand out of Europe. While the UK fared better than most of its European counterparts with a positive PMI score of 52.1 – an eight-month high in January – our manufacturers are still battling with a fluctuating UK economy and most are feeling the impact of a weakening exports market to the eurozone, so the short-term outlook remains challenging for UK manufacturers.
“However there is hope in the second half of year as inflation is expected to come back down towards target and the weakening of the sterling and euro currencies will make our exports to emerging markets more competitive. One successful business strategy for companies in these volatile times is to find new customers in emerging markets and design products for them – a company to successfully achieve this is Jaguar Land Rover (JLR).”