Fears for UK economy after manufacturing sector shrinks by 4%

Industry body Make UK says no sugar-coating poor outlook' for next year and possibly beyond'

Fears are growing over the state of the UK economy as it emerged that the manufacturing sector shrank by about 4% this year and is forecast to decline by a further 3.2% in 2023.

Increasing raw material costs, sagging consumer demand, staff shortages and higher borrowing costs have collectively formed the perfect storm for the UK manufacturing sector, according to the latest Make UK/BDO outlook report. The study showed that investment in the sector has gone negative" for the first time in nearly two years.