UK manufacturing orders shrink at fastest rate since 2020 - CBI

(Sharecast News) - Manufacturing orders shrank in May at the fastest rate since September 2020, according to data released by the Confederation of British Industry on Thursday.

The CBI's monthly balance of total new orders declined to -41 from -38 in April.

CBI senior economist Cameron Martin said manufacturers remain under significant pressure, with a growing share of firms expecting to raise prices over the summer, pointing to mounting cost pressures across the sector.

"Against an increasingly uncertain global backdrop, the conflict in the Middle East is feeding through to higher energy costs and renewed supply chain disruption, adding another layer of challenges for manufacturers, who are already grappling with weak demand," he said.

"Policy, now more than ever, must match the scale of the challenge facing businesses. Manufacturers need urgent action to reduce industrial energy costs, expand international markets for exporters and remove the delivery blockers holding back investment, from planning delays to grid connections and regulatory complexity.

"With order books weak and price pressures building again, government should focus relentlessly on lowering the cost of doing business, speeding up delivery and making the UK a more competitive place to manufacture, invest and export."

The CBI surveyed 243 manufacturers between 27 April and 13 May.