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Strong sales and purchasing activity in Q3 2024 pointed to growing confidence in the sector, against a background of interest rate cuts and low inflation, it noted. However this appears to have, if not faltered, then at least paused in Q4 2024, with order intakes potentially affected by falling consumer confidence and caution around newly volatile international trading conditions.
The rolling average of sales revenues dipped by 5.5 per cent in Q4 to £327,696, and Q4 2024 was 21 per cent lower than Q4 2023.
Energy and chemicals manufacturers saw the greatest drop in sales, falling by 62 per cent from Q3 to Q4, while furniture sales revenues dropped by 41 per cent.
Purchase order volumes fell by almost half (minus 48 per cent) after the previous quarter’s flurry of buying activity.
Overall, the UK supply chain remained healthy in Q4 2024 compared to previous years and all manufacturing sectors saw some increase in lead times except the beverages industry.
Profit margins rose as stockpiled inventory was moved off the books and converted into revenue. The average lift in profitability was 54.6 per cent for all UK small and medium manufacturers analysed, with five sectors more than doubling their profitability versus Q3.
Furniture, fixtures & home furnishing led the pack with a 147-per cent uptick. Clothing, footwear and accessories saw a 125.5-per cent rise.
Whether result of Q4 2025 is the start of a stabilisation and potential rebuild in 2025 remains to be seen, Unleashed said in a report.
Fibre2Fashion News Desk (DS)