Post by Deleted on Jun 2, 2023 10:26:17 GMT
Improved supply chain leading to increased production only to be confronted with weak demand. Let's hope a similar situation doesn't happen to financial services.
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excerpts from: www.theguardian.com/politics/2023/jun/01/brexit-historic-economic-error-larry-summers-former-us-treasury-secretary
UK factories blame 16th month in a row of falling exports on Brexit barriers
Companies report trading with Europe is now more difficult as Larry Summers says exit from EU ‘contributed to higher inflation’
British factories have reported a 16th consecutive month of falling exports, with manufacturers warning obstacles to trade since leaving the EU are undermining business relationships with firms on the continent.
The findings came as the former US treasury secretary Larry Summers said Brexit will be remembered as a “historic economic error” that damaged the UK economy and has helped to drive inflation higher.
The manufacturing sector contracted for a 10th consecutive month in May, dragged down by steady falls in exports over the last 16 months, according to the S&P Global/CIPS purchasing managers index (PMI).
S&P spokesperson Rob Dobson said: “Manufacturers are finding that any potential boost to production from improving supply chains is being completely negated by weak demand, client destocking and a general shift in spending in the UK away from goods to services. These factors are also driving a broad decrease in demand from overseas amid reports of lost orders from the US and mainland Europe. The retrenchment in export demand is also being exacerbated by some EU clients switching to more local sourcing to avoid post-Brexit trade complications.”
Make UK, the manufacturers’ lobby group, said exporters lacked government support.
“With powerful domestic manufacturing policies in place in the US and the EU, manufacturers can see that the likelihood of much export expansion to the UK’s biggest manufactured goods trading partners is dwindling,” it said.
Their comments underlined criticism from Summers earlier in the day. He singled out Britain’s departure from the EU as a factor for higher costs, criticising the UK’s economic policy as “substantially flawed for some years”.
Brexit “reduced the competitiveness of the UK economy, put downwards pressure on the pound and upwards pressure on prices, limited imports of goods and limited in some ways the supply of labour,” Summers told BBC Radio 4’s Today programme. All of which contributed to higher inflation,” he added.
In a stark critique of Britain’s management of the economy, Summers did not spare the Bank of England. He blamed the central bank for higher levels of inflation...
A recent report showed that British households have paid £7bn since Brexit to cover the extra cost of trade barriers on food imports from the EU. Researchers at the London School of Economics (LSE) estimated the impact of leaving the bloc on UK food prices and found that trade barriers consistently hampered imports, pushing up bills by an average of £250.
The UK has the highest food inflation rate in the industrialised world, according to recent data. The LSE researchers calculated the cost of food in the UK had rocketed by 25% since 2019, but this would have been only 17% without post-Brexit trade restrictions, nearly a third lower.
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excerpts from: www.theguardian.com/politics/2023/jun/01/brexit-historic-economic-error-larry-summers-former-us-treasury-secretary
UK factories blame 16th month in a row of falling exports on Brexit barriers
Companies report trading with Europe is now more difficult as Larry Summers says exit from EU ‘contributed to higher inflation’
British factories have reported a 16th consecutive month of falling exports, with manufacturers warning obstacles to trade since leaving the EU are undermining business relationships with firms on the continent.
The findings came as the former US treasury secretary Larry Summers said Brexit will be remembered as a “historic economic error” that damaged the UK economy and has helped to drive inflation higher.
The manufacturing sector contracted for a 10th consecutive month in May, dragged down by steady falls in exports over the last 16 months, according to the S&P Global/CIPS purchasing managers index (PMI).
S&P spokesperson Rob Dobson said: “Manufacturers are finding that any potential boost to production from improving supply chains is being completely negated by weak demand, client destocking and a general shift in spending in the UK away from goods to services. These factors are also driving a broad decrease in demand from overseas amid reports of lost orders from the US and mainland Europe. The retrenchment in export demand is also being exacerbated by some EU clients switching to more local sourcing to avoid post-Brexit trade complications.”
Make UK, the manufacturers’ lobby group, said exporters lacked government support.
“With powerful domestic manufacturing policies in place in the US and the EU, manufacturers can see that the likelihood of much export expansion to the UK’s biggest manufactured goods trading partners is dwindling,” it said.
Their comments underlined criticism from Summers earlier in the day. He singled out Britain’s departure from the EU as a factor for higher costs, criticising the UK’s economic policy as “substantially flawed for some years”.
Brexit “reduced the competitiveness of the UK economy, put downwards pressure on the pound and upwards pressure on prices, limited imports of goods and limited in some ways the supply of labour,” Summers told BBC Radio 4’s Today programme. All of which contributed to higher inflation,” he added.
In a stark critique of Britain’s management of the economy, Summers did not spare the Bank of England. He blamed the central bank for higher levels of inflation...
A recent report showed that British households have paid £7bn since Brexit to cover the extra cost of trade barriers on food imports from the EU. Researchers at the London School of Economics (LSE) estimated the impact of leaving the bloc on UK food prices and found that trade barriers consistently hampered imports, pushing up bills by an average of £250.
The UK has the highest food inflation rate in the industrialised world, according to recent data. The LSE researchers calculated the cost of food in the UK had rocketed by 25% since 2019, but this would have been only 17% without post-Brexit trade restrictions, nearly a third lower.
Are you saying Britain is safe with its native criminals -- drug runners, groomers, mobile phone snatchers, knife wielding teenagers, ad infinitum? Or are you suggesting that crime is acceptable to you as long as it is perpetrated by locals?