UK manufacturing output rises despite smaller workforce

UK manufacturing output rises despite smaller workforce

A smaller workforce helped UK manufacturers produce goods and materials worth 150.9 billion pounds in the third quarter of 2024, according to an analysis of ONS data by FourJaw Manufacturing Analytics. This was 1.9 billion pounds more than in Q3 2023, an increase of 1.2%.

FourJaw's analysis, which informs its UK Manufacturing Productivity Index, reveals the value of output produced this summer was 1.2% lower than Q2 2024. Much of this was due to a 0.7% decline in the price of goods leaving factories in September. Adjusting for price fluctuations shows that Q3 2024 production levels were broadly similar to Q2.

With more manufacturers operating today than in 2023, output per manufacturer was down 0.3% year-on-year. However, this output came from 25,000 fewer workers. Output per manufacturing employee has increased by 2.2% over the last year.

Chris Iveson, CEO at FourJaw Manufacturing Analytics, commented: "The latest manufacturing data has some aspects to be proud of. Manufacturing output and productivity are up compared to last year despite global economic uncertainty and businesses delaying investment decisions pending the general election. There are more manufacturers in the UK than a year ago, and while they would like to be busier, data indicates the industry is leaner and more efficient, producing more with a smaller workforce."

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