2025.04.2411:08:00UTC+00UK Manufacturing Orders Improve In April

UK manufacturing orders improved in April but export orders deteriorated sharply as tariff tensions escalate, the Industrial Trends Survey results from the Confederation of British Industry revealed on Thursday.

The total order books unexpectedly rose to -26 percent in April from -29 percent in March. The score was forecast to fall sharply to -36 percent.

However, the exports order books balance plunged to -41 percent from -29 percent. This was the weakest since December 2020 with the exception of November 2024, the survey showed.

"The wider geopolitical environment is becoming increasingly challenging for exporters, with export optimism falling sharply for a second successive quarter and export order volumes now hovering around post-pandemic lows," CBI Lead Economist Ben Jones said.

"Firms are already feeling the cumulative burden of rises in NICs and the National Living Wage - and tariffs represent another headwind for the business sector," the economist added.

Jones urged the government to view every decision through the lens of kick starting growth and incentivizing investment.

The survey showed that output volumes were broadly unchanged in the quarter to April and a net 5 percent of firms expect volumes to drop in the three months to July.

The business sentiment continued to weaken in April, with the index falling to -33 percent from -47 percent in January.

Further, numbers employed declined at the fastest pace since October 2020. The corresponding index slid to -16 percent from -8 percent. Manufacturers expect numbers employed to drop again in the quarter to July.

The index measuring average costs rose to 48 percent in the quarter to April from +43 percent in January.

Manufacturers expect to reduce spending on buildings, plant and machinery, product and process innovation, and on training and retraining. Respondents cited uncertainty about demand, inadequate net returns and labor shortages as major factors constraining capital expenditure.