UK Manufacturing Growth Boosted by Food Production Surge in Q4 2024

The UK manufacturing sector has experienced a significant boost in the final quarter of 2024, driven primarily by a notable surge in the food production subsector. According to FourJaw Manufacturing Analytics, the sector recorded an impressive £155.6 billion in output between October and December, marking its best quarter on record.

The food production segment alone accounted for £28.4 billion, representing an 8.3% increase compared to the same period in 2023. This increase is attributed to several productivity gains totaling £2.15 billion, underscoring the sector's capability to enhance efficiency even amid challenging economic conditions.

These gains in food production significantly contributed to the overall rise in UK manufacturing output for 2024, which totaled £609.2 billion, edging up from 2023’s £607.6 billion. This incremental growth of 0.26% is noteworthy, considering it occurred despite a reduction of 19,000 workers in the manufacturing workforce over the year.

Beyond the food sector, other manufacturing subsectors managed to recover from a summer slump, showing signs of resilience and adaptability. The motor vehicles and transport equipment subsector, for instance, achieved a substantial £4.48 billion increase in output, translating to a 15.9% productivity increase between Q3 and Q4 2024. Similarly, the computer, electronic, and electrical products sector saw a boost of £578 million, a 5.7% rise over the same period.

Other notable improvements were observed across textiles, paper products, and metal manufacturing, each recording incremental quarter-on-quarter growth. This development highlighted the sector's capacity to leverage technology and innovation for increased productivity.

Chris Iveson, CEO of FourJaw Manufacturing Analytics, commended UK manufacturers for their resilience, stating, “UK manufacturers have remained steadfast in the face of substantial challenges, especially since 2020. Their ability to focus on controllable factors and harness technological advancements is commendable, reflecting a promising future for the sector.”