Manufacturing confidence down as early sign of Brexit impact
Brexit has impacted manufacturing more than the services sector, according to preliminary findings from the Chartered Institute of Credit Management’s (CICM) latest quarterly barometer.
Early indications from Q2 of the Credit Managers’ Index (CMI) show the manufacturing sector is driving overall economic confidence down. The index has now fallen for the second quarter in a row. The confidence within the services sector, however, remains flat. Critically, the headline result remains above the 50-point threshold and stands at 56.1, a slight drop from Q1 2016.
The CMI is a diffusion index, producing ‘scores’ of between one and 100 (typically in a range of 40 – 60). Ten equally weighted factors are included – three favourable and seven unfavourable – and the index is calculated on a simple average of the 10 factors.
All three favourable factors have improved for the second quarter in a row; three out of seven unfavourable factors have also improved, an improvement on Q1 which saw all seven factors worsen.