A report from Make UK shows a marked improvement in the sector compared to the final quarter of 2022. The figures echo gradual improvements seen in other data regarding the state of the UK and European manufacturing sector.

The improvement is being driven by strong demand in the electronics and mechanical equipment sectors, with the balance of orders in the electronics sector extremely strong, the Manufacturing Outlook report said.

This could be due to several factors, including companies investing in digitalisation and extra capacity to counter labour shortages or, to take advantage of the final period of the super deduction scheme before it ends this month. Demand for electronics goods is especially strong from overseas, in particular the EU.

The report also showed that the sector is now in its ninth consecutive quarter of elevated price metrics, where manufacturers have consistently raised both their UK prices and export prices “far beyond” the norm...