Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

UK manufacturers positive about 2022 despite Brexit and inflation

Published 01/09/2022, 07:21 PM
Updated 01/10/2022, 04:25 AM
© Reuters. FILE PHOTO: Smoke rises above a factory at sunset in Rugby, Britain February 10, 2021. REUTERS/Matthew Childs

© Reuters. FILE PHOTO: Smoke rises above a factory at sunset in Rugby, Britain February 10, 2021. REUTERS/Matthew Childs

LONDON (Reuters) - British manufacturers are optimistic that business conditions and productivity will improve this year despite most saying they have been hurt by Brexit and rising costs, according to an industry survey published on Monday.

Trade body Make UK and accountants PwC said 73% of manufacturers believed conditions for the sector would improve and 78% foresaw at least a moderate increase in productivity in 2022.

But two thirds of companies said Brexit had hampered their business in the nearly two years since Britain left the EU, while retaining staff and rising input costs linked to inflation also presented a challenge.

"It's testament to the strength of manufacturers that they have emerged from the turbulence of the last couple of years in such a relatively strong position," said Stephen Phipson, chief executive of Make UK.

"To build on this we now need to see a government fully committed to supporting the sector," he said, adding that the government needed a longer-term vision for the economy.

Amid supply chain shortages linked to Brexit and the pandemic last year, more than a third of those surveyed said they would reshore some operations within the next two years, while just over half said they did not intend to move any of their production back to the United Kingdom.

The number of British manufacturers raising prices hit its highest in at least two decades last month, according to a similar survey, as the Bank of England raised interest rates to 0.25% to help head off inflationary pressure.

Official data showed British manufacturing output in October remained more than 2% below pre-pandemic levels.

© Reuters. FILE PHOTO: Smoke rises above a factory at sunset in Rugby, Britain February 10, 2021. REUTERS/Matthew Childs

Make UK forecast that manufacturing would grow 6.9% in 2021, and predicts growth of 3.3% for 2022.

The survey of 228 companies was conducted between Nov. 8 and Nov. 29.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.