East Midlands manufacturers face uncertainty

East Midlands manufacturers are facing uncertainty in the second half of the year.

There have been concerns about a possible downturn due to reduced consumer spending and weaker demand in international markets.

In the first half of the year, they experienced growth thanks to a domestic and international economic rebound, but now this positive trend is reversing as consumer spending declines and overseas markets weaken.

The current situation shows an output of -7%. However, output and order levels for the final quarter are strong, with a +24% and +18% increase, above the national average.

In terms of recruitment, the region saw weak growth last quarter at +3%, but in final quarter of the year it sat at +17%. Investment intentions have also declined, down by -11%, falling below the national average.

Looking at the overall output for this year, Make UK and BDO predict a contraction of -0.5%, slightly worse than the -0.3% forecast in quarter 2. Additionally, Make UK has revised its 2024 forecast to a modest growth of 0.5%, down from the earlier projection of 0.8% in quarter 2.

Chris Corkan, region director at Make UK in the East Midlands, said: “Manufacturers are seeing a mixed picture as the potent cocktail of rising interest rates, cost of living and slowing overseas markets bites hard. While it’s clear the Chancellor doesn’t have a financial war chest to try and boost growth he should use his Autumn Statement to bring forward carefully targeted measures which could make a difference to companies’ efforts to boost skills and productivity. He should use whatever is available to get the best bang for his buck.”