| Actual | Previous | |
|---|---|---|
| Orders Balance | -38% | -27% |
Highlights
The latest industrial trends survey revealed that the UK manufacturing sector continues to struggle under the weight of weak demand, high costs, and growing uncertainty. Output and orders both fell sharply in the quarter to October, with domestic and export orders declining at their fastest rate since the early COVID-19 pandemic. The downturn was widespread across sub-sectors, particularly metal products and electronic engineering, and firms expect further contraction by January.
Business sentiment has slumped, with optimism about both the domestic business environment and export prospects reaching deeply negative levels. Elevated costs, squeezed margins, and falling competitiveness have eroded confidence further. Investment intentions have collapsed, particularly for plant, machinery, and buildings, reflecting the weakest capacity expansion outlook since the 2009 recession.
Manufacturers cite weak demand, poor returns, and limited finance as key constraints. Employment has also fallen at the fastest rate in five years. Industry leaders urge the government to provide energy cost support and commit to halting further tax increases to restore competitiveness and confidence. Without decisive policy action, the manufacturing sector risks entering a deeper cycle of contraction and underinvestment that could undermine productivity and long-term growth.
Business sentiment has slumped, with optimism about both the domestic business environment and export prospects reaching deeply negative levels. Elevated costs, squeezed margins, and falling competitiveness have eroded confidence further. Investment intentions have collapsed, particularly for plant, machinery, and buildings, reflecting the weakest capacity expansion outlook since the 2009 recession.
Manufacturers cite weak demand, poor returns, and limited finance as key constraints. Employment has also fallen at the fastest rate in five years. Industry leaders urge the government to provide energy cost support and commit to halting further tax increases to restore competitiveness and confidence. Without decisive policy action, the manufacturing sector risks entering a deeper cycle of contraction and underinvestment that could undermine productivity and long-term growth.
Definition
The Confederation of British Industry (CBI) produces a monthly survey (and a more detailed quarterly report) analysing the performance of UK manufacturing industry. This is the UK's longest running qualitative business tendency survey. Questions relate to domestic and export orders, stocks, price and output expectations with the main market focus being the domestic orders balance. The survey is seen as a loose leading indicator of the official industrial production data.
Description
Started in 1958, this is the UK's longest-running private sector qualitative business tendency survey. The survey is used by policy makers along with those in the business community, academics and top analysts in financial markets. One of its key strengths is that it is released within ten days and prior to official statistics and includes data not covered by official sources. It is never revised. The data are also used by the European Commission's harmonized business survey of EU countries.
Frequency
Monthly and quarterly
Frequency
Monthly and quarterly
