The latest Confederation of British Industry (CBI) survey showed that the UK’s total order book balance dropped sharply to -38 in October 2025, down from -27 in September and well below both market expectations of -30 and the long-run average of -14. This marked the weakest reading since December 2024’s four-year low of -40, underscoring deteriorating demand conditions ahead of the November 26 annual budget, as persistent cost pressures continue to weigh on manufacturers. Quarterly data revealed the steepest declines in domestic and export orders since July 2020, while export order expectations for the next 12 months fell to their lowest since April 2020. Finance Minister Rachel Reeves is set to unveil her second annual budget next month, with reports suggesting potential tax increases or spending cuts. Many businesses fear they could be among the main targets of these fiscal tightening measures.
