# UK manufacturers expect output to fall 3.2% in 2023
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2022-12-12
Category: NEWS
Category URL: https://financedigest.com/category/news
Meta Title: UK Manufacturers Expect 3.2% Output Decline in 2023
Meta Description: British manufacturers expect a 3.2% drop in output next year due to rising costs and weak demand. Make UK calls for urgent government support and long-term
URL: https://financedigest.com/uk-manufacturers-expect-output-to-fall-3-2-in-2023html

![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2022-12-12t000807z1lynxmpeibb008rtroptp4britain-economy-manufacturing-1736814740208-compressed.jpg)

By David Milliken

LONDON (Reuters) – British manufacturers expect output to fall by 3.2% next year after a 4.4% decline in 2022, as they are hit by rising raw material prices and borrowing costs and a slide in consumer demand, a trade body said on Monday.

“There is simply no sugar-coating the outlook for next year and possibly beyond,” said Stephen Phipson, chief executive of Make UK. These are remarkably challenging [times which are testing even the best and most successful of companies](https://www.financedigest.com/oxford-bus-company-outsources-for-the-first-time.html "Oxford Bus Company Outsources for the First Time") to the limit.

Make UK welcomed recent government support, which includes 18 billion pounds ($22 billion) of energy [bill subsidies for businesses](https://www.financedigest.com/uks-sunak-to-halve-support-that-helps-businesses-pay-fuel-bills-the-times.html "UK’s Sunak to halve support that helps businesses pay fuel bills -The Times") across the economy as a whole, but warned that more may be needed soon. The [energy subsidies](https://www.financedigest.com/britain-considers-energy-bill-subsidy-for-industrial-firms.html "Britain considers energy bill subsidy for industrial firms") stop at the end of March.

The bigger issue is that the UK [risks sleepwalking into an acceptance that little or no growth](https://www.financedigest.com/retreating-up-the-risk-curve-is-no-solution-to-the-growth-challenge.html "Retreating up the risk curve is no solution to the growth challenge") is the norm. Government needs to work with industry as a matter of urgency to [deliver](https://www.financedigest.com/cavai-and-azerion-deliver-industry-first-with-conversational-in-stream-video.html "Cavai and Azerion deliver industry first with conversational in-stream video") a long-term industrial strategy,” Phipson said.

The trade body said it wanted a temporary relaxation of immigration controls, lower [property taxes and greater tax incentives for training and investment](https://www.financedigest.com/brexit-no-obstacle-as-chinese-overseas-property-investment-doubles.html "Brexit no obstacle as Chinese overseas property investment doubles").

Make UK, which says it represents 20,000 companies ranging in size from start-ups to multinationals, forecasts the broader economy will shrink 0.9% [next year](https://www.financedigest.com/eu-could-face-gas-shortage-next-year-iea-warns.html "EU could face gas shortage next year, IEA warns"), less than the 1.4% decline forecast by the government’s Office for Budget Responsibility last month.

The most recent official data shows that manufacturing output in September was 5.8% [lower than a year](https://www.financedigest.com/spains-inflation-to-be-lower-this-year-than-in-2022-minister.html "Spain’s inflation to be lower this year than in 2022 -minister") earlier.

Make UK said the scale of the [fall in output](https://www.financedigest.com/japans-factory-output-posts-biggest-fall-in-8-months-on-weak-autos-chips-sectors.html "Japan’s factory output posts biggest fall in 8 months on weak autos, chips sectors") that it was estimating for 2022 partly reflected an unusually strong performance in 2021, when there was a bounce back in demand after the pandemic.

($1 = 0.8148 pounds)

(Reporting by David Milliken; Editing by Alison Williams)


---
This blog is powered by Superblog. Visit https://superblog.ai to know more.
---