Manufacturing Outlook Report
Record numbers of manufacturers are raising prices in the face of strong inflationary pressures which show little, if any, sign of abating
In the last two quarters, manufacturers reported output levels expanding at record rates as firms saw a significant rise in demand for goods. The domestic market has also continued to expand since Q4 2020 and showed little indication of slowing down, until our latest findings.
In partnership with Make UK, our Q4 2021 Manufacturing Outlook report provides an update on the activities of UK manufacturers and the sector’s progress as it bounces back from the pandemic.
The fourth quarter’s research shows manufacturers continue to perform well. However, for the first time this year balances have fallen relative to the previous quarter. This is an indication that a growing number of manufacturers are more commonly reporting declines in output, orders, employment, and investment intentions.
This reflects supply-chain related challenges which are beginning to outweigh the benefits of robust demand. As highlighted in our Q4 report, rising energy and logistic costs, labour and inflation are driving up prices at record pace.
Our Q4 report includes detailed analysis of UK manufacturing trends as well as regional and subsector insights.
Download Q4 Report
If you would like to discuss any of the topics raised in this report, please get in touch with Richard Austin or your dedicated BDO Manufacturing partner.
Image credit: © This is Engineering.