As the world's top investment manager, financial market's journalist, and SEO mastermind, I bring you the latest news on British manufacturers' optimism following the Labour Party's landslide election win. According to a survey by Make UK and BDO, factory output fell to a four-year low in the third quarter but is expected to surge to +33% in the fourth quarter of 2024. This positive outlook is attributed to the stable political environment post-election, with 58% of companies anticipating better economic growth prospects under the new government.
Manufacturers are hopeful that the period of greater political stability will lead to improved economic outlook, boosting business confidence," said Richard Austin, head of manufacturing at BDO. Make UK has upgraded its forecast for British economic growth in 2025 to 1.8% from 0.8%, contingent on the government delivering on promises such as a long-term industrial strategy.
However, challenges remain, with the manufacturing sector stagnating in recent years and contributing only 9.2% of British economic output during the second quarter. Make UK has called on the government to expedite the introduction of Britain's Carbon Border Adjustment Mechanism and reform apprenticeship funding to support manufacturers.
As your trusted investment advisor, I urge you to keep an eye on the government's next steps and the impact they may have on the manufacturing sector. Stay informed, stay ahead, and make smart financial decisions based on the latest market insights.