Home Business Manufacturing sector contracts after Brexit stockpiling frenzy | Business – The Times

Manufacturing sector contracts after Brexit stockpiling frenzy | Business – The Times

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Manufacturing sector contracts after Brexit stockpiling frenzy | Business – The Times
Economists and trade bodies had warned that the Brexit stockpiling would deliver only a temporary boost because producers would run down their stocks once the risks passedBen Birchall/PA

The manufacturing sector shrank last month for the first time in almost three years as Brexit-related stockpiling started to fade, according to a closely watched survey.

Activity was in negative territory not seen since July 2016 as new orders suffered their first drop in seven months, according to the IHS Markit/Cips manufacturing purchasing managers’ index. The survey showed an overall reading of 49.4 for May, down from 53.1 in April. Any reading below 50 represents a contraction.

The figures suggest that manufacturers are struggling to sell to clients already saddled with large inventories of stock. Businesses stockpiled supplies in the run-up to the scheduled departure from the European Union on March 29 amid concerns that a chaotic no-deal exit would disrupt supply chains. This led…

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