The UK manufacturing industry reported a lull in output in the summer but is optimistic about growth improving in the coming months.
Factory operators are forecasting that overall economic prospects will receive a boost from a period of greater political stability, industry body Make UK found, though manufacturers have not yet noticed any immediate boost from the change of government.
Research by Make UK and BDO found almost six out of 10 companies in the sector expect better growth over the next 12 months.
The report also finds that the manufacturing output balance turned negative this quarter for the first time in four years, at -2%, down from +9%, while recruitment also took a dip.
But output is expected to jump by a third in the next quarter, with recruitment also predicted to pick up similarly.
This quarter "presents a tale of two halves," said Make UK economist Fhaheen Khan, as output turned negative, "yet investment remains positive and business confidence continues to climb".
"With an Autumn Budget and spending review fast approaching, now is the time for government to pick up the pace and deliver on pre-election promises, most notably the publication of a long-term robust industrial strategy.
"This must be combined with policy levers that help not hinder growth and international competitiveness. In particular, this means bringing forward immediately the UK CBAM and taking measures to tackle the disastrous apprenticeship numbers."