Survey finds factory bosses are putting off investment plans

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9th November 2016 13:30 - Industrial

Survey finds factory bosses are putting off investment plans: A survey has revealed that British manufacturers have fuelled fears that the economy is heading for a slowdown next year, after a survey indicated that there has been an increase in factory bosses postponing their plans to increase investment.Survey finds factory bosses are putting off investment plans

Since Britain voted to leave the European Union, there has been a quick increase in the number of factory bosses who feel that political turmoil is deterring them from increasing their spending.

Conducted by the manufacturer’s organisation, the EEF, the survey also discovered that 25 per cent of manufacturers blamed the Brexit vote for not increasing their spending, an increase of 19 per cent since the question was last asked in March, before the referendum.

The Bank of England have recently warned that Britain’s economy will slow down in 2017, despite admitting that its earlier predictions of a severe slowdown had not occurred as forecasted. The Bank of England also warned that a squeeze on household incomes and slower business expenditure would also impact growth.

The survey also revealed that the respondents would be more likely to reduce their investment in machinery and plant in the next two years, as a result of mounting worries over demand and political turmoil.

Of the survey’s participants, 60 per cent said that they intend to spend the same amount or even less in the next two years, an increase on 2015’s 54 per cent.

The survey by the EEF supports other survey findings which indicated that there may be an increase in export for some companies as the pound’s plummeting value since the referendum has made their goods more competitive in foreign markets.

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