According to the latest Business Trends survey by BDO, manufacturing confidence has declined for the first time in 14 months. The business advisory group’s Manufacturing
Optimism Sub-Index, which predicts growth expectations in six months’ time, fell from 121 in May to 119.5 in June.

Although this is well above the 100 mark that indicates growth, the fall in confidence suggests that “manufacturers are taking a more considered approach to potential challenges, such as rising operating costs,” according to BDO partner Peter Hemington (pictured).

He added: “Manufacturers are under growing pressure from a shrinking pool of skilled workers and from potential input cost increases, but confidence in the sector is high, and firms are still looking to expand well above their long-term trend rate over the next six months. June’s dip in confidence is a rational response to the issues that businesses face; nobody should have expected the stellar growth that we’ve seen in manufacturing so far this year to go on forever.”