UK food makers' confidence sinks to lowest since 2022 energy crisis

LONDON, May 28 (Reuters) - Business confidence ​in Britain's food ⁠manufacturing sector has fallen ​to its lowest since the 2022 energy crisis, the industry's main ​lobby ‌group said on Thursday, highlighting the growing impact of the ⁠war in Iran.

The Food and Drink Federation, ⁠which represents the ​UK's 12,000 food and drink manufacturers, said its members' confidence dropped to -64 in the first quarter of 2026, the lowest level ​since ‌Russia's invasion of Ukraine in 2022 and on a par with the level seen at the start of the COVID pandemic. The previous confidence score was -31%.

The FDF's ​latest State of Industry report also shows:

* Rising ‌energy prices are pushing up production costs. The cost of plastic packaging has risen ‌by up to 15%, while some members reported transport costs increasing by more than 20%. The cost of fertiliser remains ​a concern.

* 82% of members say they will have to ‌raise prices, 33% will reduce headcount or marketing spend, and 26% will pause or cancel planned investment.

* 69% of members ⁠say ⁠support with energy costs should be ‌a government priority to ease cost pressures.

* An outlook confidence score for ​the ​next quarter of -51%.

* In April, the FDF ‌forecast that food and drink inflation could reach at least 9% by the end of the year. (Reporting by James Davey. Editing by Mark Potter)