Energy costs and geopolitical risks cloud domestic outlook
A new Make UK survey shows collapsing domestic demand and rising costs weighing on manufacturing confidence and recruitment, even as output and investment hold steady. While production edged up in the first quarter of 2026, after a post-Autumn Budget slump at the end of last year, the recovery remains modest and fragile amid persistent uncertainty around orders and costs. Fhaheen Khan, senior economist at Make UK said: “Now, more than ever, the Government must act swiftly to deliver its Industrial Strategy and associated measures, including the British Industrial Competitiveness Scheme. These steps are critical to narrowing the UK’s industrial energy cost gap and giving manufacturers the confidence they need to invest, grow, and compete in a volatile global environment.”
With best regards
Mark Simms, Editor
editor@machinebuilding.net
