Why a mis-sold energy contract could be curbing growth

It could be time for manufacturers to dig into existing energy contracts as the race to restrict outgoings and improve efficiency gathers pace.

It is understood thousands of companies across the UK could have been mis-sold energy contracts by unscrupulous brokers.

And on the back of January figures that reveal a further slowdown in the manufacturing sector, ESL is ready to recoup thousands of pounds for struggling businesses feeling the pinch.

According to survey data released by S&P Global Market Intelligence, manufacturers reported another tough month as output, new orders and employment all fell.

“Business optimism remains close to December’s two-year low, while input price inflation is at a two-year high,” said S&P director Rob Dobson.

“A stagnant economy and rising cost burdens leave policymakers with a real dilemma, balancing the need for rate cuts to support flagging growth and a declining labour market against the need to contain inflationary pressures.”

There was a slight easing in the pace of contraction as the S&P Global Purchasing Managers’ Index (PMI) for manufacturing rose to 48.3 in January from 47.0 in December.

But the PMI survey showed firms were hit with the strongest purchase price inflation in two years last month, pushed up by the costs of raw material and transportation.

“Now more than ever there’s a need for businesses to ensure every penny counts and it’s disgraceful that unscrupulous energy brokers are stripping thousands of pounds out of manufacturing firms facing such a difficult period,” said Victoria Myers, Senior Partner at ESL.

“Manufacturing growth is critical to the future of the UK economy and we must do all that we can to protect British business.”