Source: Sharecast
According to the latest industrial trends survey from the Confederation of British Industry, output volumes fell in the three months to October, with the weighted balance sliding to -10 from -4. The decline was broad based, but primarily driven by food, drinks and tobacco, chemicals and metal products.
However, the fall in output was slower than the average seen over the year to date, and manufacturers now expect output to be broadly flat in the three months to January. At -1, the forward-looking balance of is the strongest since February 2025.
Total new orders also fell in the quarter, with a balance of -16. But that was a notable improvement on July’s -24, and the slowest pace of decline since April 2025.
However, overall sentiment remained depressed - at -27 - while average costs rose at a rapid pace, at 60, well above the long-run average of 20.
Cameron Martin, senior economist at the CBI, said: "There are growing signs of stabilisation for manufacturers, with firms expecting a prolonged period of falling output to come to an end in the coming months and anticipating their first increase in headcount in two years.
"But with orders still falling and labour shortages picking up, significant challenges remain. Stubbornly high costs are also squeezing profitability, while deteriorating competitiveness and fragile business confidence continue to weigh on investment decisions.
"Without an improvement in the underlying business environment, these tentative signs of stabilisation will struggle to translate into sustained growth."
The industrial trends survey was carried out between 25 September and 13 October, with 263 manufacturing firms responding.