Brexit Starting To Bite, Says CESA

Latest Brexit Watch figures make ‘difficult reading’

Brexit is really starting to hurt, according to CESA. The latest Brexit Watch, produced by EURIS, (European Union Relationship and Industrial Strategy), of which CESA is a founder member, makes difficult reading.

“The indicators we look at are, for the most part, disappointing,” says Glenn Roberts, chair of CESA. “The stats underline the need for a Brexit that gives our industries what they want – especially access to the single market and access to the EU workforce.”

This issue of the EURIS Brexit Watch comes exactly one year after the referendum. The main points are:

  • Sterling’s average exchange rate fell by 1.1% with the US Dollar in the first 23 days of June 2017, compared with the May 2017 average.
  • Input prices increased by 15.6% in April 2017 and 11.6% in May 2017.
  • The Consumer Price Index rose by 2.9% in the year to April 2017, the highest 12 month growth since June 2013.
  • The index of production grew by 0.2% in the month of April 2017 but fell by 0.8% compared to April 2016.
  • The second estimate of UK GDP growth in first quarter of 2017 was revised down by 0.1% to 0.2%, equivalent to £471 billion.
  • The provisional construction output, at constant prices, fell by 0.6% in the year to April 2017, the highest 12-month fall since May 2013.
  • Turnover fell across the four monitored manufacturing industries in April 2017. On a yearly basis, only the mechanical manufacturing industry showed some growth (0.9%). Compared to April 2016, electronics fell by 5.0%, fabricated metals fell by 2.6% and electrical fell by 0.6%

There were some positives:

  • Business investment for all industries grew by 0.6% to £43.8 billion in 2017 Q1.
  • Although exports fell in value terms by 0.1% in April 2017, to £49.8 billion, compared to April 2016 export growth was up by 10.2%.

“We’ll continue to lobby and negotiate with the government for a Brexit that works,” says Roberts. “In the short term, however, it looks like business is going to be difficult for many manufacturers and suppliers.”