Manufacturing comes out top in Bibby index

Index levels for the sector are said to have peaked at ‘unusually high’ levels in March and, despite the fall in productivity over the last three months, the performance of the manufacturing industry is still strong and remains consistent.

Specifically, the index for the manufacturing sector shows that optimism is the highest of all the sectors, with 24 per cent of small manufacturing firms stating that business is buoyant.

Additionally, 15 per cent of small firms feel that their business is stable and remain optimistic. This was a majority response for 59 per cent of larger manufacturing firms.

However, 36 per cent of smaller firms feel conditions remain tough and are struggling to survive.

Concerns expressed by some smaller manufacturing firms are mirrored in a recent report commissioned by Deloitte and US Council of Competitiveness, which suggests that the competitiveness of UK manufacturing is set to struggle over the next five years against its global counterparts.