Data from the ONS shows that the UK manufacturing sector shrank by 1% in April 2022, down from a fall of 0.2% in March, with food and drink manufacturing having the third largest negative contribution to the decline.
According to the latest update by the Food and Drink Federation (FDF), based on figures by ONS, eight out of the 13 manufacturing subsectors recording negative growth as the UK economy contracted for the second consecutive month in April.
The Organisation for Economic Co-operation and Development has also cut its UK growth forecast for 2023 to 0% reflecting high inflation and rising interest rates.
FDF said that the food and drink manufacturing is being “disproportionately impacted by current conditions.” UK manufacturers reported that rises in prices of energy, animal feed, cooking oil, fertiliser, chemicals, aluminium and steel had a negative impact on production.
It said: “Such significant rises over a short time span will mean that manufacturers will try to absorb some of these increases at the cost of foregone investment, potentially hurting the longer-term growth of our sector.”
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