Sharp slowdown in activity for manufacturers, according to latest survey
October 2023 - Industrial
Sharp slowdown in activity for manufacturers according to latest survey: A survey by Make UK has found that despite a positive look to the beginning of 2023 the outlook has shifted dramatically with the organisation cutting its manufacturing growth forecast for 2023. It also found that the forecast for next year is also bleak, within the margins of no growth at all.
The Quarterly Make UK/BDO Manufacturing Outlook Survey (Q3) found that almost three-quarters of manufacturing companies polled are of the belief that policy incentives elsewhere -- such as US Inflation Reduction Act and similar EU measures -- are having an impact on where investments are made in the UK, making them more difficult to justify. It also revealed that the majority of firms polled believe a lack of domestic policy consistency is making it harder to build a consistent business environment in the UK.
Also revealed by the polling was that more than half of the companies polled in the Q3 report have been withholding investment in the last couple of years because of the uncertain business environment, despite having accessible investment capital. In addition, more than half of respondents said that if a formal industrial strategy had been in place, they would have invested more in the last five years, or in the future.
Balance output fell from +21% in Q2 to just +3%, found the survey, with UK and export orders falling from +15% in Q2 to -3%, and total orders turning negative at -1%. Recruitment plans were found to have eased for the first time since the EU referendum, falling from +14% in Q2 to a negative balance of -1%.
Verity Davidge, Policy Director at Make UK, said:
“Manufacturers are seeing a very sharp slowdown in activity as the potent cocktail of rising interest rates, cost of living and slowing overseas markets bites hard. As a result, they are now battening down the hatches in the expectation that the next year is going to be anaemic at best and, potentially, much harder.”
Sign up to our newsletter to receive free insights from your sector...
Support Us...
We hope that you have found this article useful. This section is freely available for all to use. Please help support it by liking us or following us on our social media platforms:
