Finance
UK factories downturn eases but tax hike concerns persist, CBI says
Published by Global Banking and Finance Review
Posted on September 23, 2025
2 min readLast updated: January 21, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on September 23, 2025
2 min readLast updated: January 21, 2026
UK manufacturing downturn eased in September, but budget and economic concerns persist, affecting investment and growth.
LONDON (Reuters) -A downturn in British factories eased slightly in September but concerns about the government's November budget, the economy, high energy costs and issues hiring skilled workers are weighing on firms, an industry survey showed on Tuesday.
The CBI's monthly balance for manufacturing new orders fell in September to -27 from -33 in August.
The CBI's gauge of output for the past three months improved but remained rooted in contraction territory. The measure for the next three months edged down to -14 in September from -13 in August.
"Businesses across the board are looking ahead to the November Budget with hope that it delivers meaningful action to ease cost and regulatory pressures," Ben Jones, lead economist at the CBI, said.
"Without that clear policy direction, confidence will continue to ebb and firms will find it increasingly difficult to invest, hire and grow."
The survey's gauge of export orders improved marginally compared to August at -32, but remained far below the long-term average of -19.
Expectations for rising prices over the coming three months among manufacturers were their weakest since October 2024, the CBI said.
The CBI report followed on the heels of S&P Global's preliminary September survey of the UK manufacturing sector, which showed a downturn in output, with some factories saying the shutdown of Britain's biggest carmaker Jaguar Land Rover had impacted activity in the automotive supply chain.
(Reporting by Suban Abdulla; editing by William Schomberg)
The CBI's monthly balance for manufacturing new orders fell in September to -27 from -33 in August.
Businesses are looking ahead to the November Budget with hope that it delivers meaningful action to ease cost and regulatory pressures.
Expectations for rising prices over the coming three months among manufacturers were their weakest since October 2024, according to the CBI.
The survey's gauge of export orders improved marginally compared to August at -32, but remained far below the long-term average of -19.
UK factories are facing challenges such as high energy costs, issues hiring skilled workers, and concerns about the government's budget.
Explore more articles in the Finance category
