Finance
UK Manufacturers Report Plunge in Confidence, See Jump in Costs
Published by Global Banking & Finance Review®
Posted on April 23, 2026
2 min readLast updated: April 23, 2026
Add as preferred source on GoogleQuick Summary
British manufacturers’ confidence has tumbled to its lowest since the COVID‑19 peak, investment intentions are at the weakest since April 2020, and inflation expectations have soared to record highs, driven by the fallout from the war in Iran.
UK Manufacturers Report Pessimism and Cost Surge Amid Global Uncertainty
Manufacturing Sector Faces Mounting Challenges in 2024
Survey Highlights Growing Pessimism
LONDON, April 23 (Reuters) - British manufacturers have turned their most pessimistic since the start of the COVID-19 pandemic due to the Iran war and a measure of the expectations for inflation has surged, according to a survey published on Thursday.
Investment Plans Hit New Lows
The Confederation of British Industry also showed firms' investment plans for buildings, plant and machinery and training were the weakest since April 2020.
Expert Commentary on Economic Outlook
"Warning signs are flashing in this survey," Ben Jones, the CBI's senior lead economist, said. "It's clear that the war in the Middle East is contributing to rising uncertainty, with supply chains beginning to see some renewed strain and cost pressures intensifying."
Key Survey Findings
Business Optimism Plummets
The survey's quarterly measure of optimism about the business outlook tumbled to -65 in April from -19 in January.
Order Book Balance and Price Expectations
Order Book Balance
The CBI's monthly order book balance sank to -38 from -27 in March, falling further below its long-run average of -14.
Expected Prices Surge
The survey's gauge of expected prices jumped to +32 from +12 in March, representing the biggest month-to-month increase since records began in 1975.
Survey Methodology
The survey was based on responses from 276 manufacturers received between March 25 and April 13.
(Writing by William Schomberg, editing by Andy Bruce)
Key Takeaways
- •Confidence plunged: CBI business outlook dropped to –65 in April from –19 in January, while order books fell further to –38 in April from –27 in March (cbi.org.uk)
- •Inflation expectations spiked: Expected prices gauge surged to +32 in April from +12 in March—the largest month‑on‑month jump since records began in 1975 (cbi.org.uk)
- •Investment plans slashed: Intentions for spending on buildings, plant & machinery and training fell to their weakest since April 2020 (cbi.org.uk)
References
Frequently Asked Questions about UK manufacturers report plunge in confidence, see jump in costs
1Why has confidence among UK manufacturers plunged?
Confidence has dropped due to rising uncertainty from the Iran war, renewed supply chain pressures, and intensified cost increases.
2What does the latest CBI survey reveal about investment plans?
The survey shows investment plans for buildings, equipment, and training are at their weakest since April 2020.
3How have manufacturers' price expectations changed?
Expected prices have surged, with the survey's gauge jumping to +32 in April, the largest monthly increase since 1975.
4What impact is the war in the Middle East having on UK manufacturing?
The conflict is contributing to rising uncertainty, increased supply chain strain, and greater cost pressures on manufacturers.
5How many manufacturers participated in the recent survey?
A total of 276 manufacturers responded to the survey conducted between March 25 and April 13.
