Extreme UK manufacturing facility downturn eases marginally in January, CBI says

(Reuters) – A pointy downturn in British factories eased solely barely in January and optimism amongst producers sagged to its lowest stage in over two years, an trade survey confirmed on Thursday.

The Confederation of British Trade’s month-to-month order e book gauge improved in January to -34 from -40 in December, which had been a greater than four-year low.

The CBI’s quarterly gauge of enterprise optimism fell within the first quarter of 2025 to its lowest stage since late 2022.

“Producers have entered the brand new yr in a grim temper. Confidence has evaporated during the last three months as orders have dropped,” mentioned Ben Jones, lead economist on the CBI.

“A fall in home deliveries comes amid widespread considerations over the impression of the rise in Nationwide Insurance coverage contributions, minimal wages and adjustments to employment regulation on corporations’ working prices,” Jones mentioned.

British finance minister Rachel Reeves elevated social safety contributions employers should pay in her first price range announcement in October. The CBI mentioned worth expectations from producers additionally elevated in January to their highest stage since April 2024.

The survey was based mostly on the responses of 343 producers and was performed between Dec. 19 and Jan. 13.