Cumbrian based MHA reacts to recent growth of sector

Ginni Cooper, a partner at Kendal-based accountancy and advisory firm MHA, was speaking after the release of the S&P Global UK Manufacturing PMI data for January, which reached a 17-month high of 51.8.

A reading above 50 indicates growth in manufacturing activity.

Ginni said: "January’s PMI figures reflect a sector that is seeing light at the end of the tunnel.

"The PMI has risen for the fourth consecutive month, suggesting it is turning a corner.

"However, there are still signs that it is weighed down by uncertainty, particularly around the geopolitical arena, which continues to play on manufacturers’ minds.

"That uncertainty may already be denting sales, though if the index holds in the low 50s it remains a broadly positive signal for the start of the year."

Ginni advises manufacturing businesses across the North, including in Cumbria.

She said that while there was ‘underlying optimism’, stability would be key if manufacturers are to invest with confidence in the months ahead.

Ginni said: "Rising energy costs and upward pressure on employment bills show no sign of easing, and the incoming Employment Rights Bill risks adding further regulation and red tape at a time when businesses are asking for support, not additional burden."

She also noted that despite a more balanced labour market, many manufacturers are not replacing cut roles, accelerating a shift towards automation that requires significant investment.