Business
UK business sentiment weakest in two years before budget, CBI says
Published by Jessica Weisman-Pitts
Posted on October 24, 2024
2 min readLast updated: January 29, 2026
Global Banking & Finance Review®
Company
Published by Jessica Weisman-Pitts
Posted on October 24, 2024
2 min readLast updated: January 29, 2026
LONDON (Reuters) – Sentiment among British manufacturing companies fell at the fastest pace in two years ahead of
LONDON (Reuters) – Sentiment among British manufacturing companies fell at the fastest pace in two years ahead of finance minister Rachel Reeves’ first budget next week, a survey showed on Thursday.
The Confederation of British Industry’s measure of business sentiment dropped in the three months to October to -24% from -9% in the three months July.
Factories also reported easing cost pressures which rose at their slowest pace in four years.
Ben Jones, CBI’s lead economist, said he expected the downturn in sentiment in the manufacturing sector to bottom out and Reeves’ budget speech on Oct. 30 was a chance to change the tone.
“Manufacturers will be looking to the chancellor to deliver a confidence-boosting budget that supports business and greases the wheels of investment,” Jones said.
While possible tax rises remain a concern, firms believe that clarity over future tax plans, measures to enhance productivity, and the country’s net zero trajectory can all help cement the path to long-term growth.
Reeves, who has warned that she will increase some taxes, will set out her plan for spending and taxes.
The CBI’s monthly industrial orders balance fell to -27 in October from -35 in September, marginally above economists’ forecasts in a Reuters poll of -28.
A purchasing managers survey, published earlier on Thursday, also showed weakening sentiment among firms.
(Reporting by Suban Abdulla; Editing by William Schomberg)
Business sentiment refers to the overall attitude of business leaders regarding the economic environment. It reflects their confidence in the market and can influence investment decisions and economic growth.
Manufacturing is the process of converting raw materials into finished goods through the use of labor, machines, tools, and chemical or biological processing. It is a key sector in the economy.
Tax rises refer to an increase in the amount of tax that individuals or businesses are required to pay. This can impact disposable income and business investment decisions.
Productivity measures the efficiency of production, typically calculated as the ratio of outputs to inputs in the manufacturing process. Higher productivity can lead to economic growth.
The net zero trajectory refers to the pathway towards achieving net zero greenhouse gas emissions. It involves balancing emissions produced with those removed from the atmosphere.
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