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UK manufacturing output falls in Q3 - Industry roundup: 26 September

UK manufacturing output falls in Q3

Manufacturing output volumes fell sharply in the three months to September, according to the Confederation of British Industry’s (CBI’s) latest Industrial Trends Survey (ITS). Manufacturers expect output to decline again in the three months to December, the first-time expectations have been negative since November 2023.  

Both total and export order books deteriorated in September, relative to August, and were reported as well below their long-run averages. Expectations for selling price inflation eased in September, with prices expected to rise at a rate close to the long-run average. Meanwhile, stock adequacy (for finished goods) fell slightly, but remains close to the long-run average. 

The survey, based on the responses of 275 manufacturers, found that output volumes fell sharply in the three months to September, following a more modest decline in the quarter to August (weighted balance of -20% from -9% in the three months to August). Looking ahead, output is expected to fall in the three months to December (-7%), the first-time expectations have been negative since November 2023. 

Output decreased in 14 out of 17 sub-sectors in the three months to September, with the fall driven by the motor vehicles & transport, metal products and paper, printing & media sub-sectors. 

Total order books were reported as below “normal” in September and deteriorated relative to last month (-35% from -22%). The level of order books remained significantly below the long run average (-13%). Export order books were also seen as below “normal” and deteriorated considerably relative to last month (-44% from -22%). This was also far below the long-run average (-18%) and left export order books at their weakest since December 2020.  

Expectations for average selling price inflation softened in September (+8% from +15% in August), with the balance standing close to the long-run average (+7%). Stocks of finished goods were seen as more than “adequate” in September (+11% from +15% in August), broadly similar to the long-run average (+12%). 

“This was a uniformly disappointing set of results for the manufacturing sector, with output falling over the past quarter, order books deteriorating and manufacturers expecting activity to soften further in the remaining months of the year,” said Ben Jones, CBI Lead Economist. “The survey highlights that the recovery of the UK economy seen over the first half of 2024 remains fragile, with uneven progress seen across different sectors, and businesses increasingly cautious ahead of the Budget at the end of next month.”  

“In the meantime, firms will be looking to the Chancellor to reaffirm the government’s mission of long-term economic growth, providing them with the confidence and opportunities to invest and grow,” Jones added. “Whether that’s building on recently announced planning reforms, introducing a Net Zero Investment Plan or reducing costs – for instance through a clearer, fairer and more competitive business rates system, or setting out a business tax roadmap that delivers a simpler, more digitised and proportionate tax system. Coupled with a modern, international industrial strategy, the government could take a major stride in delivering the confidence businesses and investors are looking for. This has the potential to supercharge investment and UK growth over the next Budget period and beyond.” 

 

Corpay scores role as official FX supplier of Everton Football Club 

Corpay has announced that its Cross-Border business has entered into an agreement with Everton Football Club, one of the founding members of both the English Football League in 1888 and the Premier League in 1992, to become their official foreign exchange (FX) supplier.

Through this partnership, Everton will be able to use Corpay Cross Border’s solutions to help mitigate foreign exchange exposure from their day-to-day business needs. Additionally, the payment firm’s platform will enable Everton, the nine-time champions of England, to manage their global payments from a single point of access.

“We look forward to working alongside Corpay to help them benefit from the global exposure offered during our historic year final season at Goodison Park and the move to our wonderful new waterfront stadium,” commented Richard Kenyon, Chief Commercial and Communications Officer at Everton. 

"The Corpay Cross-Border team is honoured to be named the official FX supplier of Everton FC, one of the oldest and most successful clubs in English football," added Brad Loder, Chief Marketing Officer, Corpay Cross-Border Solutions.

 

AccessPay launches treasury consultancy led by Karen Fagan 

AccessPay, a bank integration provider, has announced the launch of its consulting arm to help organisations transform their payments, collections and treasury functions. This offering, led by newly appointed Karen Fagan, Head of Treasury Consultancy Services, will take advantage of her extensive experience from her previous role as treasury leader at media giant ITV. Fagan will assume the role of subject matter expert (SME) for AccessPay’s cash management solutions, advising on strategic treasury solutions both internally and to the company’s clients.

Based in Manchester and reporting to CEO Anish Kapoor, Fagan will combine her experience of leading multiple treasury transformation initiatives at ITV with her understanding of the AccessPay Platform. Working closely with commercial teams, the consultancy service will educate businesses on how bank integration can provide the cash visibility they need without investing in an expensive treasury management system. It will demonstrate the practical applications of AccessPay’s solutions and advise on how different organisations can optimise their cash management practices cost-effectively.

One of Fagan’s key responsibilities will be to collaborate with stakeholders across the business on AccessPay’s ISO 20022 proposition. She will lead the development and delivery of training sessions aimed at helping clients understand and implement the new standard while ensuring AccessPay exceeds client expectations during this industry-wide transition.

Fagan initially plans to work with a select group of customers to understand their long-term strategic goals and develop tailored plans to help them achieve their desired outcomes. She will also offer deeper insights into how effective cash management can drive growth and financial stability.

“I’ve been the SME on many transformation projects over the years, many of which had AccessPay at the core,” said Karen Fagan, Head of Treasury Consultancy Services, AccessPay. “Whether it’s implementing a cash pool, an Enterprise Resource Planning (ERP) tool, bank reconciliation automation, or Treasury Management Software (TMS), transformation projects need bank connectivity. I wanted to continue working on treasury-related technology projects and when this opportunity with AccessPay came up, it was the perfect fit. AccessPay has been a key partner in many of the projects I led at ITV and I am excited to help shape the future of AccessPay’s consultancy services and support our clients in achieving their long-term goals. The support AccessPay provides to women in technology was also a big draw for me and is reflected in their recent placement in the UK’s Best Workplaces for Women 2024 list.”

 

Societe Generale-FORGE and Bitpanda announce digital asset partnership

Societe Generale-FORGE (SG-FORGE) has announced a collaboration with Bitpanda to increase the accessibility and adoption of its MiCA-compliant stablecoin EUR CoinVertible to be listed in Bitpanda broker. SG-FORGE will work with Bitpanda as a long-term partner towards a shared goal of increasing the adoption of digital assets.

Regulated stablecoins like EURCV offer a bridge between traditional finance and the digital economy, providing a stable and reliable store of value, the pair said in a statement. 

Bitpanda provides a secure and regulated transaction environment aligning with SG-FORGE’s mission to provide reliable financial solutions. Listing the EURCV stablecoin on the Bitpanda platform should provide users with a seamless experience, with the ability to buy, sell and hold the stablecoin alongside other assets.

This collaboration also paves the way for expanding EURCV use cases across Europe. From cross-border payments to fund transfers and everyday transactions, the bank says users will benefit from the stability of SG-FORGE’s stablecoin and the convenience and security offered by the Bitpanda ecosystem. 

 

Worldline provides cloud-based instant payments for Anadolubank Nederland

Worldline has signed a contract with Anadolubank Nederland N.V. for its cloud-based instant payments solution. This partnership will enable Anadolubank to seamlessly comply with the new EU Instant Payments regulation. The five-year agreement signifies a potential path forward for other mid-size banks, aiming to stay compliant while accelerating their digital transformation.

By adopting the cloud-based instant payments solution, the bank will be able to send and receive instant payments as mandated by the new EU regulatory requirements for instant payments. In addition to instant payments processing, the bank also contracted Worldline’s value-added services for customer sanction screening and stand-in funds check. The features of Worldline’s offering will allow Anadolubank Nederland N.V to offer secure, reliable, real-time fund transfers for its customers.

Worldline’s cloud-based instant payments solution is designed to meet the unique needs of mid-size banks, providing a suite of services that ensure compliance, efficiency, scalability and a fast time-to-market. Worldline says that processing in the cloud enables clients to handle instant payment transactions with ease while ensuring timely compliance with the SEPA Credit Transfer Instant (SCT Inst) scheme. It also offers fast onboarding, API connectivity and a sandbox environment as a safe testing space for clients to better adopt and adapt to the new solution.

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