Manufacturing companies have warned that hopes for an economic boost under the current government after the Budget have been ‘significantly dimmed’.
Figures from industry body Make UK show that confidence among manufacturers has fallen the sharpest since the second quarter of 2020, when the British economy came to a standstill due to the first Covid-19 lockdown.
Costs to the sector were also expected to rise ‘substantially’ as a result of the budget, which included an increase in employers’ national insurance contributions and the minimum wage.
Make UK forecast that UK manufacturing will shrink by 0.2 per cent this year, down from the 0.5 per cent forecast in September. It also lowered its expectations for 2025, expecting the sector to grow by just 0.7 percent.
Concerns: Figures from trade body Make UK show confidence among manufacturers has fallen the sharpest since the second quarter of 2020
British senior economist Fhaheen Khan said that “manufacturers are now facing a cost crisis.”
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