North West manufacturers say trading conditions at the end of the year are “anaemic” - but that there are welcome signs of stability after the uncertainty of the pandemic.
In the latest Q4 Manufacturing Outlook survey, published today by Make UK and business advisory firm BDO, Make UK upgraded its growth forecast for manufacturing in 2023 to +0.8%. But it is forecasting growth in 2024 of just +0.1% due to weak prospects in both the UK and its largest market, the Eurozone.
The survey showed output in the North West weakened towards the end of the year. It is forecast to turn more positive in the first quarter of next year at with a positive balance of 6%, although this is below the national average.
Exports and domestic orders were weak, though orders are expected to pick up in Q1 2024.
Recruitment plans being far more positive at the start of next year with a balance of +17%, which Makes UK said: “could reflect an improving picture for the main sectors in the North West such as aerospace and motor vehicles”.
Dawn Huntrod, region director for the North West at Make UK, said: “After the economic and political shocks of the last few years manufacturers in the North West are seeing weak trading conditions as we end the year. However, they are at least beginning to see far greater stability after the chaos of the last few years.
“While one swallow doesn’t make a summer, hopefully the positive announcements in the Autumn Statement can at least allow them to plan with more certainty without having to constantly fight fires.”
Graham Ellis, head of manufacturing at BDO in the North West, said: “North West manufacturers have been calling on the Government to provide targeted support to help stimulate growth and investment for some time, and it feels like some headway was made in last month’s Autumn Statement.
“Whilst manufacturing firms in the region are ending the year under somewhat lacklustre trading conditions, the hope now is that the sector can take stock and plan for more stability next year.”
