Make UK’s latest Manufacturing outlook report reveals that despite a downturn in the sector’s output and growth, business confidence is the highest it has been in 11 years.

The manufacturers’ organisation, along with accountancy and business advisory firm BDO, has published its report for the third quarter of 2024.

This is the first report since the change of government in July 2024. The findings reveal that there is yet to be a clear sign of any improvement in the sector’s economic performance.

The findings show output figures have turned negative for the first time in four years (+9% in Q2 to -2% in Q3), but are forecast to jump by a third in the next quarter.

Domestic orders have weakened (decreasing from +14% in Q2 to +7% in Q3), but export orders (+11%) are currently exceeding the domestic market – though this is forecast to change in Q4.

While output and orders have taken a hit, the report expects both indicators to improve in the next quarter, driven in part by a surge in export...