Every region in the UK reported deterioration in manufacturing confidence as cost pressures intensified, results of the latest Regional Trends Survey carried out by the Confederation of British Industry, or CBI and Experian revealed Monday. Firms expect weakness in manufacturing activity across most of the regions and see further increase in cost.
The result of the CBI/Experian Regional Trends Survey was based on 525 replies taken for CBI's Industrial Trends Survey received between June 25 and July 9.
The survey showed that the outlook for the sector was downbeat but the majority of regions recorded firm export orders, limiting the slowdown. Seven out of eleven regions saw an increase in overseas demand this quarter. At the national level, new order volume in the last three months remained broadly unchanged for the second straight quarter, while expectations for total orders were negative across the regions.
Peter Gutmann of Experian stated "Exports are helping to limit the slowdown in the manufacturing sector, boosted particularly by sterling's weakness against the euro. However, the near-term outlook for manufacturing still looks tough as the economy enters a precarious phase."
Total manufacturing output was unchanged in the prior three months at the national level. Four regions, led by the East Midlands posted increase in production, while five regions experienced contraction. Further, the survey revealed that the output is set to fall across the majority of the regions in three months to October.
Manufacturing employment contracted in the last quarter, but at the slowest pace since 2004. However, the outlook for jobs was much weaker, reflecting the more difficult economic backdrop that is expected. The West Midlands, Yorkshire and the Humber, Northern Ireland and the South East and London expect significant job losses in the coming months. The East Midlands was the only region forecasting an increase in headcount.
Firms attempted to offset some of the damage to profit margins by raising prices. According to the survey, both domestic and export prices climbed in every regions in the last quarter. Investment intentions for plant and machinery at the UK level were more subdued than at any time since 2002.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.