According to Make UK, despite a positive picture in the first half of the year, the sector is going into reverse. In March, it was reported that manufacturers were seeing a rebound in activity despite ongoing inflationary pressure.

But Make UK, which represents 20,000 manufacturers across the country, has now cut its forecast for growth for 2023, with output set to fall this year as recruitment plans are reversed amid slowing orders.

It said the findings diverge in the aerospace and chemical sectors, which continue to perform very strongly relative to other sectors. Aerospace in particular has benefited from a glut of orders for new aircraft over the last year, as well as a strong rebound in long-haul international travel.

In response to the downturn, Make UK called on the chancellor to introduce measures on skills, digitalisation, productivity and energy efficiency in the upcoming Autumn Statement.

Verity Davidage, a policy director at Make UK, said...