24 Apr 2026
Sentiment amongst manufacturers in the UK has 'deteriorated sharply', according to research carried out by the Confederation of British Industry (CBI).
The CBI's Industrial Trends Survey – which measures manufacturing output volumes – revealed that optimism about both the business situation and export prospects fell at its fastest rate since the onset of the Covid-19 pandemic.
Manufacturing output fell in the three months to April, and at a faster pace than in the three months to March, the survey showed.
Meanwhile, cost pressures remain elevated: growth in average costs per unit of output accelerated in the three months to April.
Ben Jones, Senior Lead Economist at the CBI, said: 'Warning signs are flashing in this survey. Sentiment among UK manufacturers is deteriorating at a speed not seen since the pandemic. 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.
'The UK's high industrial energy costs were a concern even before the conflict, leaving the manufacturing sector vulnerable to the crisis. And as the squeeze on competitiveness becomes more pronounced, output and orders are weakening, spare capacity is rising and manufacturers are scaling back hiring and investment plans.'