Headlines
UK manufacturers see weakest outlook for orders since 2020
Published by Global Banking and Finance Review
Posted on October 23, 2025
2 min readLast updated: January 21, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on October 23, 2025
2 min readLast updated: January 21, 2026
UK manufacturers report weakest order outlook since 2020, with high energy costs and tax concerns impacting competitiveness, according to CBI.
LONDON (Reuters) -British manufacturers see the weakest prospects for orders since 2020 and current orders are down by the most since December, the Confederation of British Industry said on Thursday, blaming high energy costs and tax worries before next month's annual government budget.
The CBI's monthly order book index sank to -38 in October from -27 in September, well below its long-run average of -14 and its lowest since the end of last year, with export orders down particularly sharply.
Quarterly orders data showed the biggest declines in domestic and export orders since July 2020, and expectations for export orders over the next 12 months were the lowest since April 2020 at the start of the COVID-19 pandemic.
"Order books are weakening, cost pressures remain stubbornly high, and uncertainty is rising ahead of the Budget. This is making businesses increasingly reluctant to commit to new hiring and investment," CBI lead economist Ben Jones said.
Finance minister Rachel Reeves is due to deliver her second annual budget on November 26 and some businesses fear they will be the main target for the roughly 25 billion pounds ($33.55 billion) of tax rises or spending cuts which economists expect Reeves to make.
Jones said manufacturers wanted government action to reduce their energy bills, which he described as "a significant factor crippling the sector's competitiveness".
($1 = 0.7451 pounds)
(Reporting by David Milliken; editing by Suban Abdulla)
The Confederation of British Industry (CBI) is a UK business organization that represents the interests of businesses and promotes policies that support economic growth.
Export orders refer to requests for goods or services that are to be shipped to foreign countries, reflecting the demand for a country's products in international markets.
A budget is a financial plan that outlines expected revenues and expenditures over a specific period, helping businesses manage their finances effectively.
Domestic orders are requests for goods or services that are placed within a country's borders, indicating local demand for products.
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