UK manufacturers face declining orders amid economic challenges

Published 21/08/2025, 11:10
UK manufacturers face declining orders amid economic challenges

Investing.com -- British manufacturers experienced a decline in orders during the three months to August, with further weakness anticipated in the coming months, according to a survey released Thursday by the Confederation of British Industry (CBI).

The CBI’s monthly balance for manufacturing new orders dropped to -33 in August from -30 in July, returning to June’s low point, which marked the weakest performance since early 2025.

The outlook appears increasingly pessimistic as the gauge measuring expected output over the next three months fell to -13 from -6, reaching its lowest level since May.

Manufacturers are struggling with multiple challenges, including uncertainty stemming from U.S. President Donald Trump’s trade tensions and domestic tax increases.

"Manufacturers report that rising costs are squeezing margins and leaving customers more cautious, which in turn is hitting orders and weighing on output," said CBI Lead Economist Ben Jones.

He added, "With weak demand compounded by trade frictions and policy uncertainty, the outlook for UK manufacturers remains challenging."

The survey also revealed that firms’ expectations for their pricing power had fallen to the lowest level since October last year, indicating reduced ability to pass on costs to customers.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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