Manufacturing businesses told to look beyond Europe

British manufacturing businesses may need to trade outside of Europe, in countries such as China, if they are to survive the eurozone debt crisis.

According to the latest Markit/CIPS Purchasing Managers’ Index (PMI), the PMI has dipped from 58 to 57.5, mainly as a result of a drop in export orders.

Michael Baxter, editor of Investment and Business News, explained how the eurozone debt crisis could affect British manufacturers.

He said: “Certainly the euro crisis will have been difficult. I can’t see how if cuts are being made all over Europe that exports to EU nations could continue at the rate we were seeing, no matter how cheap sterling is.

“The UK must look towards some of the other economies in the far east. The fact is our exports to China are tiny, but Chinese wages are picking up, which is good news. This could lead to higher consumer demand.”

Meanwhile, a survey by HSBC recently found that only 14 per cent of businesses in the UK recognise the opportunities available through Eastern markets.

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