The UK manufacturing sector has faltered in recent months, as rising interest rates and slowing economies in many parts of the world have cut global demand. That spells trouble for manufacturing demand and suggests yields in that subsector will see a larger rise than warehousing and distribution over the next few months. However, helped by the weak pound, demand should recover next year and manufacturing returns will closely follow our forecast for all-industrial at around 8% p.a. from 2024-27.
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