Manufacturers see strong start to summer despite clouds on the horizon
East of England manufacturers have seen a strong start to the summer helped by a surge in orders for the region’s food and drink producers, according to a key survey. The second quarter manufacturing outlook survey from Make UK and BDO showed that output in the region climbed to a historically high balance of +44 per cent although total orders were flat. Meanwhile, recruitment intentions (+29 per cent) were positive and investment (+56 per cent) is also being ramped up. Food and drink producers are pushing up production ahead of the summer hospitality season. But the outlook for export growth in the US has faded in the light of tariffs and uncertainty and manufacturers now have higher hopes for Asia/Oceania and the Middle East. Over half of firms expect their export volumes to the US to be hit. Manufacturing growth this year is set to be slightly negative (-0.2 per cent) and the forecast next year has been cut from 1 per cent to minus 0.5 pc. Peter Harrup, head of manufacturing at BDO in the East of England, said: “This quarter’s results are a real boost to East of England manufacturers. The growing output levels in the region are proof of manufacturer’s resilience, and last month’s trade deals should only strengthen this. Whilst the sector’s overall forecasted decline in growth is concerning; the appetite for skilled recruitment and targeted investment is strong in the region.”
Tourism businesses ‘cautiously optimistic’ in the face of financial pressures
Over half of tourism businesses in the East of England expect turnover growth this year although a sense of ‘cautious optimism’ in the sector is tempered by financial pressures, according to Larking Gowen’s Tourism Business Survey 2025. Some 55 per cent of businesses in the sector projected income growth for this year compared to 25pc expecting a downturn. Worries include the economy, inflation, rising employee costs and the loss of business rate relief. Some 52 per cent said they would be investing in site improvements and over half plan to spend more on marketing and PR. Responding to increased costs in the sector, over half said they would increase prices. Jo Burton, tourism, leisure and hospitality director at Larking Gowen, said: “As we entered 2025, a sense of cautious optimism seemed to return. But behind this optimism lies a shared reality, with many businesses having to raise prices to manage rising costs. While 37pc of participants enjoyed a rise in profitability – up from 23pc in 2023 – an equal number saw a decline. Still, confidence shone through, with 43pc expecting profits to rise, 31pc predicting a fall, and the remainder expecting no change,” she said. The Larking Gowen Tourism Business Survey 2025 can be seen here.
Business start-ups slow as uncertainty takes its toll
Business start-ups in the region have slowed over the spring although they are still up on a year ago and the number of firms with late payments on their books has dipped. Figures from the Eastern branch of insolvency and restructuring trade body R3 show a 13 per cent fall in the number of businesses which were set up in East Anglia in May to 7,161 compared to March when 8,218 new enterprises were registered. But the May total is still 11 per cent up on the figure for the month a year ago. R3 Eastern chair Hayley Watson (right) said: “The immediate decline in local entrepreneurship is reflected across the whole of the UK and highlights the uncertainty caused by rising employment costs, contracting economies, world politics and spiralling fuel and energy costs.”
“It appears that many businesses are taking sound steps to minimise their current financial exposure and to push into new markets and ventures only at a time when they have the best economic platform to succeed.”
‘Investment prospectus’ launched to attract backing for £4.2 billion of major projects in the East
An East of England ‘inward investment prospectus’ has been launched in a bid to attract backing for eight major projects across the region worth a total of £4.2 billion. Launching the report, Ipswich MP Jack Abbott, who is also the government’s mission champion for the East of England, said: “The East of England has shown time and time again that, given the right backing, we will deliver. The eight projects in the prospectus show the breadth and depth of ambition, innovation and entrepreneurship across our region. It is also real statement of intent, and the first step in a long-term project of renewal and fresh impetus.” The eight projects are: Aviva Chesterford Research Park (£500m gdv) for life sciences in Uttlesford, Essex; Bushey Golf & Country Club – redevelopment (£116m gdv): Cross Point Logistics Park near Haddon (£500m gdv); Greater Brookfield, Broxbourne (£1.1bn gdv); Hatfield Innovation Campus (£800m gdv); Portman Road Redevelopment in Ipswich (£120m gdv); Southend Airport Business Park (£150m gdv); Stevenage Station Gateway (c.£1bn gdv).
Jack Abbott added: “One of my central ambitions is to drive investment into the East of England, because I am ambitious for my town and for our region. I want us to reach our potential and this landmark prospectus will help us to do exactly that. The East of England means business and so do I.” The initiative is also backed by the cross-party East of England All-Party Parliamentary Group.
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Plan to make the region a leader in clean aviation tech launched at Norwich Airport
A regional strategy to make the East of England a leader in clean aviation technologies and advanced air mobility was officially launched in Norwich this week. The Aviation East Manifesto was unveiled at an event at Saxon Air, Norwich Airport along with a dedicated innovation hub at the site. The plan aims to accelerate the adoption of electric and hydrogen aircraft, increase early access to sustainable aviation fuel and lead the UK in developing commercial drone operations. It seeks to take advantage of the rural and coastal landscape of Norfolk and Suffolk to test emerging technologies. Speaking in the House of Commons recently, Norwich South MP Alice Macdonald said: “The East of England is already seeing amazing work to revolutionise the way we travel, resulting in faster, cleaner transport solutions such as electric aircraft and drone taxis. I am proud to back Aviation East, which could unlock growth and jobs in Norwich and beyond.” Meanwhile, Evotech, based at Saxon Air, has become a member of Connected Innovation network, which links Norfolk and Suffolk innovation hubs and promotes collaboration on R&D in the sector.
Norwich event highlights impact of lawyers on economy
The Law Society of England and Wales marked the 200th year since its founding with a recent event in Norwich highlighting the significant impact solicitors have had on the economy and local communities in the region. With more than 6,000 solicitors across the East, a third are young professionals under 40 helping to grow the legal sector in the region. In Norwich alone, law firms turned over £56.7 million last year. Law Society president Richard Atkinson, said: “The East of England continues to be a prominent region contributing greatly to the UK economy and legal profession. From general litigation to commercial property, solicitors in Norwich and the wider region excel in providing outstanding legal services.”
Senior appointment at Colchester-based agency
Colchester-based marketing agency Mosaic has marked six months as a certified B Corporation with the appointment of experienced communicator and former journalist Matt Stott as its new senior PR and digital account manager. He has more than seven years’ experience in PR and digital marketing, most recently at communications agency PLMR Genesis where he led integrated campaigns for clients across infrastructure, education, healthcare and local government in the region. Matt Stott (photo) said: “I believe communications should be purposeful, confident and targeted. It should help people understand what an organisation stands for and why their offer is relevant and valuable. That’s what drew me to Mosaic. Their commitment to sustainability, social impact and ethical marketing shines through their client work and how they work together as a team.” B Corporation is a certification for businesses that meet high social and environmental standards.
Appointment signals move to unite public affairs and PR
Sovereign Strategy, a global political consulting and PR firm, has appointed Paul Hutton as chief marketing officer in a move that signals the company’s intent to unify public affairs, strategic communications and marketing under one integrated offer. The appointment follows his move in October 2023 to become managing director at Norwich-based FOUR Agency, founded in 1963. Paul Hutton (right) said: “We’ve reached a moment where public affairs, communications, and marketing can no longer operate in silos. Audiences are more fragmented, more informed, and more emotionally driven than ever before. Whether you’re influencing a policymaker or a consumer, the strategies are converging — and we must evolve with them.”
Outlook in a ‘state of flux’ but global economy likely to avoid recession this year
The economic outlook remains in a state of flux with mounting trade barriers, geopolitical uncertainty and eroding confidence represent key risks to global growth. While inflationary pressure has resurfaced in some economies – and higher tariffs could intensify such pressure – worldwide inflation is expected to ease. Unless a full-blown trade war erupts, the global economy is likely to avoid recession this year. So says Daniele Antonucci (photo), chief investment officer at Quintet Private Bank, parent of Brown Shipley, and Boryana Perfanova, client Investment specialist at Brown Shipley.
Meanwhile, the firm’s 2025 midyear investment outlook notes that interest rate cycles are diverging. The European Central Bank and Bank of England are expected to stay on a rate-cutting path. The Bank of Japan has signaled its readiness to raise rates, while the US Federal Reserve continues to walk a tightrope – balancing the risk of reigniting inflation against the danger of stifling economic growth. “The stagflationary trend that defined the first half of the year – slower growth and higher prices – has not fully faded,” said Antonucci, noting that US policy is shifting from global tariffs to domestic deregulation and tax cuts. “A key question is whether the stimulus generated by tax cuts and increased spending will offset market concerns about the size and trajectory of US government debt.”
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