UK manufacturers optimistic despite fall in output

British manufacturers are hopeful for a brighter future, despite a sharp decline in output during the third quarter of 2024, according to a survey by Make UK and BDO.

The gauge of factory output fell to a four-year low of -2 per cent, down from +9 per cent in the previous quarter. However, optimism is growing, with respondents predicting a rebound to +33 per cent in the fourth quarter.

The survey attributed the improved outlook to political stability following the Labour Party’s landslide victory in the July election. A majority of 58 per cent of companies said the new government would boost economic growth, while Make UK upgraded its forecast for 2025 to 1.8 per cent, up from 0.8 per cent.

The sector, which contributed a record-low 9.2 per cent to UK economic output in Q2 2024, is calling for government action on industrial strategy and reforms to apprenticeship funding.

Manufacturers are also urging the government to bring forward the introduction of a Carbon Border Adjustment Mechanism to 2026 to align with the European Union (EU).