Manufacturing activity in the UK showed a slight improvement in September, but several factors such as the new budget are still putting pressure on the industry.

Industry surveys indicate that the decline in activity in British factories slightly eased in September, but the government's November budget, economic outlook, high energy costs, and difficulties in recruiting skilled workers continue to put pressure on businesses. The CBI industrial orders balance for September improved from -33 in August to -27. Output indicators for the past three months have shown some improvement, but they are still in contraction territory. Expectations for the next three months decreased slightly from -13 to -14. CBI Chief Economist Ben Jones said, "Businesses across all sectors are waiting for the November budget, hoping for concrete measures to alleviate cost and regulatory pressures. Without clear policy guidance, confidence will continue to erode, and businesses will face increasing difficulties in investment, hiring, and expansion." The survey shows that export order indicators have slightly improved to -32, but are still far below the long-term average of -19. CBI reported that manufacturers' expectations for price increases in the next three months are at their weakest level since October 2024.