UK factories see output slump - CBI
By Abigail Townsend
Date: Thursday 22 May 2025
(Sharecast News) - The UK manufacturing sector suffered a sharp contraction in May, an industry survey showed on Thursday, as rising costs and US tariff concerns weighed on sentiment.
According the latest industrial trends survey from the Confederation of British Industry, output volumes in the three months to May fell at the joint-steepest pace since August 2020, with the weighted balance tumbling to -25 from -2 in April.
Output decreased in 13 of the 17 sub-sectors, including metal products and food, drink and tobacco.
Total order books were reported as being below normal for the time of year, with a balance of -30. That was down on April's -26 and the weakest reading since January.
Export order books, however, while still below normal, improved notably on the previous month, rising to -29 from -41.
Ben Jones, lead economist at the CBI, said: "Sentiment among UK manufacturers seems poor, reflecting a combination of rising domestic business costs and US tariff uncertainty.
"Many respondents reported a reluctance to spend among their customers.
"Although there are some bright spots = notably aerospace and renewable energy - the sector as a whole is reporting that their order books remain week and this is expected to weigh on output volumes through the summer."
Jones welcome the trade deals recently secured by the government with India, the US and the European Union.
But he said more action was still needed. "Businesses are facing pressure from high energy costs, rising labour costs and the threat of extra regulation with the Employment Rights Bill coming down the track."
The CBI survey coincided with the latest manufacturing PMI data from S&P Global, which also showed the sector struggled in May.
A total of 281 manufacturing firms responded to CBI's survey, which was conducted between 25 April and 13 May.
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