Unprecedented pessimism that controls British industrialists due to taxes
A survey that has continued closely has shown that British industrialists have been in their more pessimistic situations for more than two years, following the imposition of the customs duties of the President of the United States Donald Trump described as a “day of commercial liberation”.
The index of the United Kingdom production manager, issued by Standard & Poor Global, revealed that the production of factories for the seventh consecutive month during April, in light of a state of commercial fog that led to the erosion of consumers and companies, according to the newspaper “Telegraph”.
The report also indicated the continuous contraction in employment in the industrial sector for the sixth consecutive month, with the second fastest pace for the loss of jobs in about 5 years.
“The new requests have decreased on exports to the fastest frequency of almost 5 years, between a remarkable weakness of demand by the United States, Europe and China Continental,” said Rob Dobson, director of the research of Standard & Poor Poor Global.
The producers, included in the survey, underlined that the customs duties announced by Washington had a great impact on global markets, since they pushed commercial partners to adapt to a more volatile commercial environment.
Industrial companies also face growing pressure on the cost of production, since the inflation of purchase prices has reached its highest level in 28 months. In addition to the high prices of raw materials in global markets, British producers bring further local inflationary charges deriving from the increase in national insurance taxes and the minimum wages, with the accompanying repercussions in terms of salary.
These high costs lead to a high sales mixture, reduce expenditure for employment and non -essential purchases; This improves the fears of the economy that enters the cycle “high cost and decline in demand”.
For his part, Fahin Khan, an economist of the “make UK” industrial group, said that the customs duties imposed by Trump, including a 10 % tax on all goods exported by the United Kingdom to the United States and increased them to 25 % on steel, aluminum and cars, have caused a deeper slowdown in the manufacturing sector for years.
He added: “The state of uncertainty, in particular as regards the policies of American customs duties, caused serious damage, as it confused the decision process and led to paralysis in some aspects of economic planning”.
He continued: “Many companies have been postponed to make strategic investment decisions so that the vision became clearer, while finding itself forced to reduce costs by distracting employees, despite their continuous breeding prices”.
