Eurozone crisis may be slowing UK export drive
The recent upturn in UK exports may have been hit by the financial problems in the eurozone, new figures suggest.
According to the latest Chartered Institute of Purchasing and Supply manufacturing index, export order growth fell last month to 50.7, down from the 56.7 registered in May.
Exports, buoyed by the weakness of sterling, have been one of the drivers of recovery in the manufacturing sector.
However, the latest figures indicate that the recovery may be stalling.
The eurozone is the UK’s largest export market, and the difficulties that many EU member states are currently experiencing could have an adverse effect on British business.
David Noble, chief executive at the Chartered Institute of Purchasing and Supply, said: “We’re already starting to see the turbulent eurozone make its mark which is causing unease given that export orders arguably led the sector out of recession.
“It’s been a tense month for the UK manufacturing sector. The sector maintained strong momentum in June, but looming headwinds are causing some insecurity. All eyes will be peeled to see if the sector can carry forward this strong pace in the second half of the year.”