Britain’s manufacturing sector eked out modest growth last month after a shock contraction in April, but remained close to stagnation as Brexit fears hit activity.
The closely-watched Markit/CIPS UK Manufacturing purchasing managers’ index showed a reading of 50.1 in May, up from 49.4 in April, which had marked the first contraction for more than three years.
A reading above 50 signals growth.
The report reveals that more than a third of UK manufacturers surveyed believe uncertainty over the EU vote has had a detrimental impact on their business.
Of those, 8% said the impact was “strongly detrimental”.
UK economists said Brexit fears are putting off spending and investment decisions, while a slowdown in the global economy has also impacted demand for British goods from abroad.
Howard Archer, chief UK and European economist at IHS Global Insight, said the manufacturing sector was “essentially at a standstill in May”.
Rob Dobson, senior economist at survey compiler Markit, added: “Softer global growth is weighing on new export orders.
“There are also signs that increased client uncertainty resulting from slower growth and the forthcoming EU referendum is weighing on investment spending.”
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We never manufactured much before so Brexit should be a good thing not a bad thing for British people.