The body, which represents UK manufacturers, blamed the forecast on increasing costs across the board, tighter fiscal and monetary policy and weakening consumer demand. The results, which were based on a survey of 330 firms, suggest the UK’s manufacturers are headed for “a perfect storm” the body said.
Manufacturing is forecast to contract by -3.2 per cent in 2023, which comes on the back of a forecast -4.5 per cent contraction this year. The number for this year is relative to a very strong 2021, which reflected the pandemic bounceback.
Make UK has consistently been revising down its forecasts for manufacturing growth in 2022 throughout this year from 3 per cent in March to 1.7 per cent in July, 0.6 per cent in September and now, a contraction of -4.5 per cent.
It highlights the extent to which conditions for the sector have weakened significantly, especially in the final quarter of the year.
“While the Chancellor has already brought in some welcome...