Yorkshire manufacturers record positive end to 'volatile' year as new figures revealed

A spokesperson said: “According to the survey, the balance on output was +29 per cent which is strong by historic standards although orders looking towards the first quarter of next year have eased off to a balance of +9 per cent, largely due to a forecast sharp drop in export orders.

"Make UK’s national survey showed that for only the second time, the United States dropped out of the top two global markets for growth prospects, highlighting the impact on Transatlantic trade from tariffs.

"Encouragingly investment intentions performed strongly at a balance of +20 per cent but the pre-Budget speculation about potential tax rises and other labour costs clearly significantly affected job prospects in the region as these turned negative in line with the national picture at a balance of -27 per cent.

“Despite the positive end to the year, Make UK also cautioned against the survey kick starting a period of stronger trading, as growth forecasts for the sector remain weak with output forecast to grow by just 0.5 per cent this year and contract by -0.5 per cent in 2026.”

Dawn Huntrod, Region Director of Make UK in the North, said: “After a period of considerable uncertainty in global markets, these figures are an encouraging sign that Yorkshire & Humber manufacturers’ confidence is improving and, more importantly, being translated into growth and investment.

"To build on this, given the UK’s eye watering industrial energy costs it’s now vital that Government brings forward the proposed business energy support scheme as fast as possible and expands it across the sector to the broadest number of companies.”

Steve Talbot, Head of Manufacturing at BDO across Yorkshire & the Humber added: “This year has been a volatile one for UK manufacturers. Whilst the last quarter has shown solid signs of growth for Yorkshire & the Humber, the sector needs to feel assured to enable them to put their hands in their pockets and invest. 

"Last month’s Budget gave manufacturers some relief in terms of investment, green transition and some positive skills measures but it fell short in addressing some of the biggest concerns the sector is facing. Businesses need decisive action if growth is to be realised.” 

The survey figures come after official statistics released on Friday showed the UK economy had shrunk for the second month running in October, contracting by 0.1 per cent following a 0.1 per cent decline in September.

Most economists had been expecting a rise of 0.1 per cent for October on hopes of a manufacturing bounceback led by Jaguar Land Rover’s (JLR) recovery from a major cyber attack.

The Office for National Statistics (ONS) said gross domestic product (GDP) fell as car manufacturing activity only made a “slight” recovery from the woes at JLR, with the services sector weighed down as consumers held back spending on the high street before the Budget, delivered on November 26.

The data shows the UK economy has now not grown since June, with GDP either flat or falling in the past four months.

Economists said the weaker-than-expected figures would reinforce hopes of an interest rate cut by the Bank of England this week.