2024 UK manufacturing to grow 0.5%, textile output to dip 7.7%: Survey

It shows that while growth in manufacturing continues to be anaemic at best, almost 58 per cent of the companies believe that the recent change in government will lead to better economic growth overall in the next 12 months. In contrast, just 6 per cent of companies expect gross domestic product (GDP) to decline this year.

As a result, Make UK has upgraded its forecast for the economy overall in 2025 from 0.8 per cent to 1.8 per cent.

Make UK projected that manufacturing will grow by 0.5 per cent this year and 0.8 per cent in 2025. This is a downgrade from 1.2 per cent forecast in the last quarter, but is due to revisions by the Office of National Statistics on which the forecasts are based. GDP is forecast to grow by 1.1 per cent this year and 1.8 per cent in 2025.

The manufacturing output of the UK textile sector is projected to drop by 7.7 per cent in 2024 and by 2.9 per cent in 2025.

The survey backs the improved picture looking forward although current conditions are weaker. While the balance on output decreased from plus 9 per cent in Q2 to minus 2 per cent, it is forecast to jump to plus 33 per cent in the next quarter.

Total orders are following a similar pattern, decreasing from plus 14 per cent in Q2 to plus 7 per cent and then also jumping to plus 33 per cent in the next three months.

Export orders (plus 11 per cent) exceeded UK orders (minus 4 per cent), but the pattern since the pandemic when UK orders have consistently exceeded export orders is forecast to resume in the next quarter at plus 27 per cent and plus 26 per cent respectively.

Recruitment intentions turned negative for the first time in four quarters decreasing from plus 26 per cent to minus 1 per cent. However, intentions are projected to jump in the next three months to plus 22 per cent as companies take on staff to meet the expected increase in demand and better economic outlook, a release from both the organisations said.

Business confidence has also risen to equal the highest level recorded since the survey started measuring the indicator in 2014. The only previous occasion was during the immediate post-COVID rebound. Investment intentions moderated, however, from plus 15 per cent to plus 11 per cent.

The survey covered 307 companies.

Fibre2Fashion News Desk (DS)