Almost a half of British manufacturers are worried by the steep slowdown witnessed by China’s economy and one in ten are already considering their business plans in the country. The information was revealed on Sunday after the results from a survey conducted by an industry group was obtained.
EEF said that almost 47 per cent of manufacturers in European Nations were concerned by the signs of slowdown of the Chinese economy, which shook the financial markets through the past week.
The big manufacturing units in business with China are the ones who are most worried. Reports suggest that these organizations are already re-working on their business plans taking into account the different scenarios prevalent in the Chinese economy and elsewhere, as revealed by the survey.
Overall only a small portion of the produce by UK factories are actually sold to the Chinese customers. However, such steep plunges recorded by the Chinese economy will inhibit the growth pace of the global manufacturing sector by halting the export sales that are carried through Europe’s supply chains. This information was shared by the EEF chief economist Lee Hopley.
He also said that the confidence levels of global manufacturers have already become very delicate. The extensive impact of the economic slowdown in China is likely to adversely impact the already poor confidence of manufacturers.
EEF also said that only time will decide whether the ongoing sector would take a further toll on the growth of the manufacturing sector around the world. EEF also mentioned that the most directly exposed manufacturing sector to the financial turmoil triggered in China are road vehicles, which accounts for 16 per cent of exports to China. This segment is followed by leather goods and metal working machinery.
The survey was conducted on 284 companies and it showed that over a fifth of manufacturers were worried about the re-escalation of crisis in Greece.