Output declines as UK manufacturers plan to increase prices – CBI Industrial Trends Survey
UK Manufacturing Faces Ongoing Challenges
British manufacturers experienced continued difficulties in the period leading up to January, as highlighted by the most recent CBI Industrial Trends Survey. Both production levels and new orders saw declines, with factories operating below capacity and investment intentions remaining subdued.
Although confidence among manufacturers continued to wane, the level of pessimism was the lowest recorded since July 2024. Output in the manufacturing sector decreased over the three months to January, with the rate of decline slightly accelerating compared to December. The contraction affected a wide range of industries, particularly impacting the food, beverage and tobacco, metal products, mechanical engineering, and chemicals sectors.
Looking ahead, businesses anticipate further reductions in output.
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