Confidence amongst manufacturers in the East of England is climbing as many firms believe greater political stability will improve economic prospects although recruitment intentions and investment have dipped, according to a third quarter manufacturing outlook survey from Make UK and BDO. Some 58 per cent of firms believe that the recent change in government will lead to better economic growth in the next 12 months.
Confidence has reached levels last seen at the beginning of Covid recovery. The balance on output in the East was +12 per cent and is forecast to jump to +47 pc in the next quarter whilst orders are set to increase from +18pc to +53pc over the same period. But a mixed picture for the region is reflected in a dip in both recruitment intentions (-24pc) and investment (-12pc).
Peter Harrup, tax partner at BDO in the East of England, said: “Manufacturers across the East of England are hopeful that a period of greater political stability will provide a better economic outlook ahead, and that in turn is boosting business confidence. Time will tell if that confidence can translate to investment and recruitment intentions where the region relies heavily on skilled workers taking up manufacturing positions.”
Chris Corkan, region director at Make UK in the East of England, said: “With an Autumn Budget and Spending Review fast approaching, now is the time for government to pick up the pace and deliver on pre-election promises, most notably the publication of a long-term robust industrial strategy.”
