A THIRD of manufacturers believe the economy will deteriorate this year, according to a new report by Make UK.

The sector faces rising costs and a potential trade war sparked by US import tariffs.

A survey of senior executives, published today by manufacturers’ body Make UK, has found that about three in five plan to increase investment in response to a long-term industrial strategy.

Make UK chief executive Stephen Phipson said: “Manufacturers have demonstrated their resilience over and over again in recent years and, despite the numerous challenges they face, those that remain innovative and are prepared to invest in new technologies, expanding markets and, most crucially, their people will continue to thrive.

“It is now vital that the government sets out as a matter of urgency the immediate and significant priorities as part of its formal industrial strategy, given the very clear benefits manufacturers believe this will bring.”

Industry Minister Sarah Jones welcomed the “high confidence from businesses in our industrial strategy.”