UK Business Morale Deteriorates Most Since Covid Crisis

The CBI’s quarterly measure of UK manufacturing optimism plunged to -65 in April from -19 in January, marking the weakest sentiment since 2020 as the Iran war fuels uncertainty. The survey highlighted growing pressure on supply chains and rising costs, with firms turning increasingly pessimistic about the outlook. Order books deteriorated further, with the balance falling to -38 from -27 in March, well below the long-run average. At the same time, inflation expectations surged sharply, with the price gauge jumping to +32 from +12, the largest monthly increase on record. Investment intentions also weakened significantly, with plans for spending on buildings, machinery, and training dropping to their lowest levels since April 2020.