Manufacturers’ confidence remains robust despite weak economy

18 March, 2024

According to Make UK, while this is to some degree a reflection of weak demand in overseas markets, it is also due to the impact of leaving the EU given it fits with other data on UK trade.

The scramble to attract and retain talent also shows no signs of abating, with recruitment intentions remaining strong at +12% and increasing next quarter to +14%. Apart from the start of the pandemic, employment balances have been at elevated levels since the EU referendum, indicating that skills shortages and vacancies in manufacturing are now structural. Investment intentions increased from +10% to +15% continuing the positive trend in every quarter bar one since the beginning of 2021. This would seem to indicate a positive response to the announcement on full expensing by the Chancellor in the Autumn Statement.

Make UK’s latest economic forecasts are for just 0.1% growth in manufacturing this year and 0.8% in 2025. GDP is forecast to grow 0.6% this year and 1.6% in 2025.

The survey of 326 companies was conducted between 14 January and 28 February.

https://twitter.com/MakeUk_

https://www.linkedin.com/company/makeuk/

https://twitter.com/bdoaccountant/

https://www.linkedin.com/company/bdo-llp/