The Make UK/BDO Q4 Manufacturing Outlook survey shows manufacturing is forecasted to contract by -3.2% in 2023. This comes on the back of a forecast -4.5% contraction this year, the number for this year is relative to a very strong 2021, which reflected the pandemic bounce back.
Make UK has consistently been revising down its forecasts for manufacturing growth in 2022 throughout this year from 3% in March to 1.7% in July, 0.6% in September and now, a contraction of -4.5% 1, it highlights the extent to which conditions for the sector have weakened significantly, especially in the final quarter of the year.
1 The -4.4% forecast for manufacturing this year also reflects revisions to the blue blook methodology which have led to significant changes to the direction of manufacturing output, particularly since 2020. The data suggest that manufacturing has continued to decline since a high point in Q2 2021.