Make UK, a trade body, said in its report published on Monday that British manufacturing firms expect their output to fall by 3.2% in 2023 after declining by 4.4% this year.

Key takeaways

"There is simply no sugar-coating the outlook for next year and possibly beyond." 

"These are remarkably challenging times which are testing even the best and most successful of companies to the limit."

"The bigger issue is that the UK risks sleepwalking into an acceptance that little or no growth is the norm. The government needs to work with industry as a matter of urgency to deliver a long-term industrial strategy.”

“Make UK forecasts the broader economy will shrink 0.9% next year, less than the 1.4% decline forecast by the government's Office for Budget Responsibility last month.”

Market reaction

GBP/USD is off the lows, paying little heed to the above headlines. The pair is losing 0.18% on the day at 1.2230, at the press time.