LONDON (Reuters) -British manufacturers see the weakest prospects for orders since 2020 and current orders are down by the most since December, the Confederation of British Industry said on Thursday,
UK Manufacturers Face Dismal Order Prospects, Lowest Since 2020
Current State of UK Manufacturing Orders
LONDON (Reuters) -British manufacturers see the weakest prospects for orders since 2020 and current orders are down by the most since December, the Confederation of British Industry said on Thursday, blaming high energy costs and tax worries before next month's annual government budget.
Decline in Domestic and Export Orders
The CBI's monthly order book index sank to -38 in October from -27 in September, well below its long-run average of -14 and its lowest since the end of last year, with export orders down particularly sharply.
Impact of Budget on Manufacturers
Quarterly orders data showed the biggest declines in domestic and export orders since July 2020, and expectations for export orders over the next 12 months were the lowest since April 2020 at the start of the COVID-19 pandemic.
Need for Government Support
"Order books are weakening, cost pressures remain stubbornly high, and uncertainty is rising ahead of the Budget. This is making businesses increasingly reluctant to commit to new hiring and investment," CBI lead economist Ben Jones said.
Finance minister Rachel Reeves is due to deliver her second annual budget on November 26 and some businesses fear they will be the main target for the roughly 25 billion pounds ($33.55 billion) of tax rises or spending cuts which economists expect Reeves to make.
Jones said manufacturers wanted government action to reduce their energy bills, which he described as "a significant factor crippling the sector's competitiveness".
($1 = 0.7451 pounds)
(Reporting by David Milliken; editing by Suban Abdulla)
