Confidence among British manufacturers is at its highest level in a decade as companies welcome “concrete signs” of economic change.
A closely watched survey of companies has revealed an uptick in companies’ hopes about their growth prospects.
Both production and orders have improved in recent months, according to Make UK, which represents the UK manufacturing sector.
Business confidence is now at level 7, on a scale of 1 to 10. This is only the second time it has reached such a high level, since the group began measuring business sentiment in 2014.
Businesses last felt this optimistic in the second quarter of 2021, when the economy was enjoying a major post-Covid rebound. Make UK said the manufacturing sector will outperform the wider economy this year as it is expected to grow by 1.2 per cent.
Confidence: Production and orders have improved in recent months, according to Make UK
The survey of 320 employers will be a boost for Prime Minister Rishi Sunak before the country goes to the polls on July 4.
And it’s good news for businesses, which are hopeful that interest rates will fall in the near future as inflation continues to cool.
James Brougham, senior economist at Make UK, said: “At last, manufacturers can see concrete signs of growth and a much brighter economic outlook ahead.”
And he added: “The next government must take advantage of this scenario by offering a modern, long-term industrial strategy that goes beyond the 2030s and has the support of all governments.”
Around 64,000 vacant roles are costing the industry a staggering £6bn in lost output each year, says Make UK.
With increasing demand and the emergence of green shoots of recovery, more companies plan to hire staff in the coming months.
The group wants politicians to commit to addressing skills shortages through a “fundamental review” of the apprenticeship funding system and a wider training system.
Since the current apprenticeship levy was introduced in 2016, the number of new apprenticeships has fallen by 41 per cent, from 78,840 in 2015/16 to 45,970 in 2022/23.