"Report links Iran conflict to UK clothing manufacturers’ sales drop ", 19 May 2026

According to research published...by...Unleashed, small and mid-sized clothing manufacturers in the UK saw their average quarterly sales revenue fall to £278,427.

This...marks a year-on-year drop of 53%.

Across all manufacturing categories, average sales revenue declined by 39%...

Leisure and recreation manufacturers saw...quarterly sales revenue also falling by 44%...

The furnishings sector recorded...revenue plunging by 61%...Construction suppliers experienced their sales revenue fall by 57%...

The report indicates that contracting sales were accompanied by a reduction in purchasing activity and lower stock levels...

The value of purchase orders across all categories on average fell by 51%. At the same time, profitability dropped from 54% in the previous quarter to 35%...

Despite these conditions, lead times shortened from 26 days to 19 days, while stock on hand more than doubled...

Unleashed’s parent company, The Access Group, ERP Small Business GM Joe Llewellyn said: “Tensions in the Middle East, including the Strait of Hormuz blockade, have created significant market uncertainty – and our data suggests this is now taking its toll on manufacturers.

“...With fuel prices already up, and energy prices expected to rise later this year, the coming months could reduce confidence, increase costs, and squeeze margins even more..."