Despite the doom and gloom predictions leading into 2023, the first half year figures show that there is plenty to be optimistic about.
Manufacturing Outlook survey shows a marked pick-up
Q2 Manufacturing Outlook Survey by Make UK and accountancy and business advisory firm, BDO, reveals a more positive picture than shown in the final quarter of 2022. The U.K. economy grew surprisingly strongly in the second quarter of 2023, as a manufacturing rebound in June rescued a period that seemed doomed to contraction. The figures echo the gradual improvements in other data such as the UK and European PMIs which are now only just in negative territory, as well as a strong pick-up in demand from China.
Source: Q2 Manufacturing Outlook Survey by Make UK/BDO
“Manufacturers are seeing a gradually improving picture, but the word ‘gradually’ is doing a lot of heavy lifting. However, companies are at least seeing a relative period of stability after the political and economic turmoil of the last few years when they have spent most of their time firefighting.”
James Brougham Senior Economist at Make UK
UK ninth largest manufacturing nation in the world
With an annual output of £183bn, the UK is the ninth largest manufacturing nation in the world. From January–March 2023, the manufacturing sector accounted for 9.5% of total UK economic output. In a climate rocked by economic crises, the figures in manufacturing are going in the right direction. UK GDP increased to £51.35bn in the first quarter of 2023, up from £51.09bn in the fourth quarter of 2022. While growth is expected to be modest at 0.3% this year and to improve to 1.0% in 2024, according to the Organisation for Economic Co-operation and Development (OECD), obstacles still exist.
