British Manufacturing Outlook Q4 2022
Britain’s manufacturers are set to plunge into recession next year as the deteriorating economic conditions at home and abroad exert a vice-like grip on the sector, with increasing costs across the board, tighter fiscal and monetary policy and weakening consumer demand forming a perfect storm. The Make UK/BDO Q4 Manufacturing Outlook survey shows manufacturing is forecasted to contract by -3.2% in 2023. This comes on the back of a forecast -4.5% contraction this year, the number for this year is relative to a very strong 2021, which reflected the pandemic bounce back.
Make UK has consistently been revising down its forecasts for manufacturing growth in 2022 throughout this year from 3% in March to 1.7% in July, 0.6% in September and now, a contraction of -4.5% 1, it highlights the extent to which conditions for the sector have weakened significantly, especially in the final quarter of the year.
Stephen Phipson, While the Chancellor has already brought in some welcome measures to help ease the cost pressure on companies in the short term, it may not be too long before we see him having to bring more firepower to ease cost pressures.
