This forecast decline for the textile sector comes on top of high figures earlier. The forecast for the sector’s output in 2024 stands at minus 1.6 per cent. Employment in the sector is projected to decline consecutively both in 2023 and 2024, by minus 4.4 per cent and minus 3.2 per cent respectively.
Whether this rebound in manufacturing activity is a resurgence of growth and investment or a one-time data blip remains to be seen, BDO UK, which provides tax, audit and assurance, advisory and business outsourcing services to companies, said in a release.
“Manufacturers have seen a rebound at the start of the year as conditions have improved in their major markets and, business confidence has improved. However, one swallow doesn’t make a summer and it is far too early to say the worst has passed given the significant challenges the economy faces.” said Fhaheen Khan, senior economist at Make UK.
“The results of our research with Make UK illuminates that, despite glimmers of good news such as strong demand for electronics and mechanical equipment, inflationary pressures are still very evident for UK manufacturers with increased costs still being passed on,” said Richard Austin, national head of manufacturing at BDO.
“The data shows conflicting upward and downward indicators—potentially an industry at a crossroads. It will be fascinating to see which path will be followed over the coming months,” he added.
Fibre2Fashion News Desk (DS)