UK manufacturers yet to see growth prospects but remain hopeful, BDO says

Britain’s manufacturers have yet to see an immediate boost from the government change but remain hopeful of an improvement to overall economic prospects, according to a new survey from BDO.

The new Q3 Manufacturing Outlook survey, published by the firm alongside Make UK, found that almost six in ten companies believe that the new government will lead to better economic growth in the next 12 months. In contrast, only 6% of companies expect GDP to decline this year. 

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

Richard Austin, head of manufacturing at BDO, said: “Manufacturers 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 improved output and orders next quarter, but there’s a growing sense of hope that a rising tide can lift all boats. 

“All eyes are on the Government’s next steps. We need an Industrial Strategy that is fit for purpose to ensure that the confidence firms currently have in future economic prospects is not misplaced.”