Finance
UK factory slowdown eases but companies remain wary, CBI survey shows
Published by Global Banking and Finance Review
Posted on July 24, 2025
2 min readLast updated: January 22, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on July 24, 2025
2 min readLast updated: January 22, 2026
UK manufacturing stabilizes but remains cautious, facing high costs and labor shortages, CBI survey reveals.
LONDON (Reuters) -Britain's manufacturing sector seems to have stabilised after a downturn but the outlook remains fragile with factories holding back on investment and cutting jobs again, according to a survey published by the Confederation of British Industry.
As well as weaker demand, manufacturers were facing tough price pressures, the survey published on Thursday showed.
"Conditions in UK manufacturing remain challenging, with many firms reporting subdued and unpredictable demand," Ben Jones, lead economist at the CBI, said.
"High input costs, labour shortages and global supply chain disruptions are continuing to put pressure on margins and capacity," Jones said.
The survey showed a drop in optimism among manufacturers with little sign of a recovery in investment plans. Companies were facing uncertainty about future demand, inadequate returns and persistent labour shortages, the CBI said.
A measure of employment in the next three months remained negative albeit less so than in April.
The monthly balance for manufacturing new orders improved to -30 in July from June's -33, taking them back to May's reading.
The monthly reading also showed a pick-up in average prices that manufacturers expect to charge over the next three months to +21 from +19 in June.
(Writing by William SchombergEditing by William James)
The CBI survey indicates that the UK manufacturing sector has stabilized after a downturn, but the outlook remains fragile with factories cutting jobs and holding back on investment.
UK manufacturers are facing challenges such as high input costs, labor shortages, and global supply chain disruptions, which are putting pressure on margins and capacity.
The survey showed a drop in optimism among manufacturers, with little sign of recovery in investment plans due to uncertainty about future demand and inadequate returns.
The employment outlook for manufacturers remains negative, although it is less severe than in April, indicating some stabilization in job cuts.
The monthly balance for manufacturing new orders improved slightly to -30 in July from -33 in June, indicating a minor recovery in demand.
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