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UK manufacturing rebounds in Q3, but outlook uncertain
By Benjamin Chiou
Date: Monday 15 Sep 2025
(Sharecast News) - Activity across the British manufacturing sector saw a "sharp rebound" over the third quarter, according to a survey out on Monday from Make UK and BDO, though producers are still likely to experience tough trading conditions over the coming year.
The Make UK/BDO Q3 Manufacturing Outlook survey showed that the net balance on output rose to +25% from +9% in the second quarter, with the net balance on orders rising to +16% from -2%.
All indicators in the survey improved following a series of weak quarters, with both export orders and UK orders seeing a significant uptick.
Make UK said there were signs that pent-up investment demand has now been released, while manufacturers' intentions to recruit have also risen.
Looking ahead, however, growth forecasts remain weak, with output set to decrease 0.1% in 2025 and by 0.6% in 2026.
An inability to fill the current 46,000 vacancies across the sector is said to be costing firms £4bn in lost output every year.
Some 68% of manufacturers said their costs have risen more than predicted over the past six months, leading 58% of firms to hike prices. Meanwhile, with 70% expecting further cost increases from November's Budget, 53% reckon they will raise prices over the next six months.
"After a period of considerable uncertainty in global markets, these figures are an encouraging sign that manufacturers' confidence is improving and, more importantly, being translated into growth and investment," said Make UK's chief executive Stephen Phipson.
"However, one swallow doesn't make a summer, and with UK and European markets in particular remaining anaemic it wouldn't take much to knock prospects for further growth."
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