The Purchasing Managers’ Index measures the performance of the manufacturing and service sectors and is widely regarded as a key indicator of economic growth or decline. A reading on the Index of above 50 indicates growth in these sectors in comparison to the previous month, if the PMI Index is below 50 it suggests a recession.
In April 2016 the Services Index fell to 49.2 which took it below the 50 benchmark for the first time since March 2013. Manufacturing also registered a decline which, according to Markit Economics, coincides with a decline in both employment and stocks of purchases, with production and new orders nearly stagnating. The FT accounts this decline to the UK referendum on EU membership suggesting that uncertainty surrounding its outcome has placed the UK economy under pressure.
The Week reports almost a unanimous consensus amongst economists that the UK should remain in the EU. According to a survey conducted by Ipsos Mori for the Observer 90% of economists predict a hit to growth over five years and 70% believe the UK would suffer for up to two decades if it leaves.
With latest polls suggesting almost a 50:50 split on the Brexit decision amongst the UK population, whatever the outcome on 23rd June, we should brace ourselves for some turbulence ahead.
And in troubled times, those British businesses with a clearly defined vision, strong leadership skills and highly engaged employees will be best placed to weather out the storm ahead.
A strong vision can provide a crucial anchor for a business which provides strategic guidance and an element of certainty in uncertain times. As the Harvard Business Review puts it “companies that enjoy enduring success have a core purpose and core values that remain fixed while their strategies and practices endlessly adapt to a changing world.”
Jennie Flower, Business Development Director Minerva Engagement
Minerva Engagement improves business from the inside out. Ask us how we can help define a clear vision, develop leadership skills, embed that vision into the culture of the organisation and improve engagement and business performance. View more blogs from Minerva Engagement or follow us on Twitter @MinervaEngage.