East Midlands manufacturers are seeing an anaemic picture as they end the year, but business confidence indicators are showing promising signs of a more stable economic environment after the global and domestic uncertainty of the last few years.
However, while Make UK upgraded its growth forecast for manufacturing in 2023 to +0.8% it is forecasting growth in 2024 of just +0.1%. This reflects the weak economic picture for the UK overall and weak growth in the Eurozone which remains the UK’s biggest market.
The findings come in the Q4 Manufacturing Outlook survey published by Make UK and business advisory firm BDO. According to the survey, output in the East Midlands weakened towards the end of the year from a balance of +12% in Q3 to zero in the final quarter.
Both export and domestic orders are weak reflecting the fragility in the UK’s major markets, with little sign of a pick up in the first quarter of 2024. This picture is reflected in recruitment plans being put on hold while investment intentions have turned negative at a balance of -6%.
Chris Corkan, Region Director for the Midlands at Make UK, said: “After the economic and political shocks of the last few years manufacturers in the East Midlands are seeing weak trading conditions as we end the year.
“However, they are at least beginning to see far greater stability after the chaos of the last few years. While one swallow doesn’t make a summer, hopefully the positive announcements in the Autumn Statement can at least allow them to plan with more certainty without having to constantly fight fires.”
Jonathan Lanes, Head of manufacturing at BDO in the Midlands, added: “East Midlands manufacturers have been calling on the Government to provide targeted support to help stimulate growth and investment for some time, and it feels like some headway was made in last month’s Autumn Statement.
“Whilst manufacturing firms in the region are ending the year under somewhat lacklustre trading conditions, the hope now is that the sector can take stock and plan for more stability next year.”
