North West manufacturers are optimistic as the automotive and aerospace sectors increase production

Northwest manufacturers are more optimistic about the outlook for the second half of the year as the automotive and aerospace sectors continue to ramp up production.

A survey of second quarter production forecasts published by Make UK shows that production and orders are up significantly compared to the first quarter and are expected to increase over the next three months, in line with the national picture. This sector is expected to overtake the entire UK economy in 2024.

In the North West, production is expected to increase in the automotive and aerospace sectors, while the pharmaceutical sector will also continue to perform well. Make UK said: “This improved picture is translating into increased recruitment intentions, with employment prospects particularly strong compared to historical levels.”

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Business confidence has also increased, reaching the highest level recorded since the survey began in 2014. The only other time it reached the same level was in the immediate aftermath of the Covid pandemic rebound.

Producers were also asked about the three most important priorities for the future government. Over two-thirds (69.1%) said industrial strategy was a top priority, with a further 54.2% calling for closer EU-UK relations and a further 44% in favor of reducing the tax burden on business. Other priorities included investment in national infrastructure (31.5%) and apprentice levy reform (24.1%).

Make UK forecasts output will grow by 1.2% in 2024, but that growth will slow to 0.8% in 2025. It expects GDP to grow by 0.9% in 2024 and 2% in 2025 .