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Manufacturers stockpiling at record rates
05 February 2019
UK manufacturers are stockpiling raw materials at record levels as they prepare for Brexit according to the IHS Markit/CIPS Purchasing Managers’ Index.
Figures show that UK manufacturers stockpiled goods in January at the fastest rate since the 27 year survey began.
“The start of 2019 saw UK manufacturers continue their preparations for Brexit. Stocks of inputs increased at the sharpest pace in the 27-year history, as buying activity was stepped up to mitigate against potential supply-chain disruptions in coming months,” said IHS Markit director Rob Dobson in a statement.
“There were also signs that inventories of finished goods were being bolstered to ensure warehouses are well stocked to meet ongoing contractual obligations.”
Meanwhile a study by the Institute of Directors suggests almost a third of UK companies are looking at moving operations abroad after Brexit.
The survey of 1,200 business leaders found that 16% already had relocation plans while a further 13% said they are actively considering a move.