Manufacturing output eases, but investment intentions recover

The report showed that growth slowed to more typical rates of expansion following a period of ‘exceptionally strong’ growth over the previous year. Average costs and prices continued to rise sharply, with similar rates of cost and price inflation expected next quarter.

Optimism within the sector fell for a third consecutive quarter, but investment intentions generally improved and employment within the sector continued to grow, though less quickly than expected last quarter (for the third quarter running). Concerns over shortages of labour and shortages of components and materials remained acute.

“There are strong signs that manufacturers are pursuing long-term strategies to see themselves through current volatility with investments in their people, plants and machinery,” said Maddie Walker, head of Industry X in the UK at Accenture. 

“Rather than pull back on innovation, investing in technology will help to improve productivity, keep costs down, and unlock new ways to make products more effectively.”