UK factory activity eased slightly in September, but new budgets and other factors still exert pressure.

Jin10 data September 23, the industry survey shows that the decline in UK factory activity eased slightly in September, but the government's November budget, economic outlook, high energy costs, and skilled worker recruitment challenges continue to put pressure on businesses. The CBI industrial order balance in the UK fell from -33 in August to -27 in September. Output metrics have improved over the past three months but remain in the contraction zone. The expected value for the next three months has dipped slightly from -13 to -14. CBI Chief Economist Ben Jones stated, “Businesses across all sectors are waiting for the November budget, hoping for practical measures to ease cost and regulatory pressures. Without clear policy guidance, confidence will continue to erode, and companies will face increasing difficulties in investment, hiring, and expansion.” The survey indicates that the export order metric has improved slightly to -32 but is still well below the long-term average of -19. CBI reports that manufacturers' expectations for price increases over the next three months are at their weakest level since October 2024.