Finance
UK factories report new downturn and weak outlook, CBI says
Published by Global Banking and Finance Review
Posted on August 21, 2025
2 min readLast updated: January 22, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on August 21, 2025
2 min readLast updated: January 22, 2026
UK manufacturing faces a downturn with falling orders and weak outlook, as reported by CBI. Rising costs and trade tensions add to the challenges.
LONDON (Reuters) -British manufacturers have suffered a fresh setback with orders falling heavily in the three months to August and further weakness expected ahead, according to a survey published on Thursday by the Confederation of British Industry.
The CBI's monthly balance for manufacturing new orders slipped to -33 in August from -30 in July, taking them back to June's low which was the weakest since the start of 2025.
A gauge of output expected over the next three months slipped to -13 from -6, the lowest since May, adding to the sense of gloom over the sector which has been the uncertainty caused by U.S. President Donald Trump's trade tensions as well as a tax hike at home.
"Manufacturers report that rising costs are squeezing margins and leaving customers more cautious, which in turn is hitting orders and weighing on output," CBI Lead Economist Ben Jones said.
"With weak demand compounded by trade frictions and policy uncertainty, the outlook for UK manufacturers remains challenging," Jones said.
Firms' expectations for the prices they charge fell to their weakest since October last year.
Earlier on Thursday, a separate monthly survey also showed a fall in new orders and overall activity in the manufacturing sector, in contrast to an improvement for services firms.
(Writing by William Schomberg; editing by David Milliken)
New orders in manufacturing are requests for goods or services that manufacturers receive from customers. A decline in new orders can indicate weakening demand in the economy.
The Confederation of British Industry (CBI) is a UK business organization that represents the interests of businesses and provides insights and surveys regarding economic conditions and trends.
Economic challenges refer to difficulties that affect the economy, such as high inflation, unemployment, or declining consumer demand, which can hinder growth and stability.
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