Make UK Manufacturing Outlook Report Q1 2024
Britain’s manufacturers are facing the prospect of two years of low growth, with latest forecasts suggesting the rate for the sector will remain flat this year at 0.1%, before increasing by 0.8% in 2025 – just half the forecasted GDP rate for the economy overall.
The findings come from Make UK’s Manufacturing Outlook 2024 Q1 survey, in partnership with business advisory firm BDO. It also reveals that, despite the above forecasts, confidence levels among companies in the sector remain robust, with investment and recruitment intentions increasing on those in Q4 2023.
According to the survey, the balance on output fell significantly at the end of last year but is expected to rebound in the next three months. Total orders remained at similar levels but, likewise, are also forecast to improve over the same period.
Similarly, in the previous quarter, both UK and export orders were flat but are both predicted to improve, while the post-pandemic pattern of UK orders consistently exceeding export orders looks likely to continue after a brief reversal in Q4 2023.
Underlying sectoral and regional imbalances also look set to persist, with electronics, aerospace and food and drink powering ahead, whilst the South East and Wales are performing substantially better than other regions and devolved nations.