East of England manufacturers lead UK growth surge

The findings come in the Q2 Manufacturing Outlook survey by Make UK. It finds that both output and orders have picked up substantially compared to the first quarter and are set to strengthen in the next three months in line with the national picture.

The East of England in particular is set to benefit from increased production in the food and drink sectors which have a strong presence in the region. This better picture is translating into increased recruitment intentions with job prospects especially strong compared to historical levels.

Business confidence has also risen to equal the highest level recorded since the survey started measuring the indicator in 2014. The only previous occasion it reached the current level was during the immediate post Covid rebound.

The survey also asked companies to list their top three priorities for the next government. More than two-thirds of manufacturers said delivering an industrial strategy was the top priority, more than half said strengthening EU/UK relations, while almost half cited reducing the business tax burden. This was followed by investment in national infrastructure (31.5 per cent) and reforming the Apprentice Levy (24.1 per cent).

Make UK is forecasting that manufacturing will grow by 1.2 per cent in 2024 but moderate to 0.8 per cent in 2025. GDP will grow by 0.9 per cent in 2024 and two per cent in 2025, it says.

Make UK CEO, Stephen Phipson said: “After the economic and political shocks of the last few years there is now strong confidence among manufacturers in the East of England.

“At long last, companies can see concrete signs of growth and a much better economic outlook ahead. With prices cooling and potential cuts in interest rates to come, the next government must capitalise on this scenario by delivering a modern, long term industrial strategy which goes beyond the 2030s and has cross-government support.”