The severe decline of the factory in the United Kingdom is reduced marginally in January, says CBI By Reuters

(Reuters) – A sharp decline in British factories eased only slightly in January and optimism among manufacturers fell to its lowest level in more than two years, an industry survey showed on Thursday.

The Confederation of British Industry improved its monthly order book gauge in January to -34 from -40 in December, which had been a more than four-year low.

The CBI’s quarterly gauge of business optimism fell in the first quarter of 2025 to its lowest level since late 2022.

“Manufacturers entered the new year in a gloomy mood. Confidence has evaporated in the last three months as orders have fallen,” said Ben Jones, economist at the CBI.

“The fall in domestic shipments comes amid widespread concerns about the impact of rising National Insurance contributions, minimum wages and changes to labor law on business operating costs. businesses,” Jones said.

The British finance minister, Rachel Reeves, increased the social security contributions that employers must pay in her first budget announcement in October. The CBI said price expectations from manufacturers also rose in January to their highest level since April 2024.

The survey was based on the responses of 343 manufacturers and was conducted between December 19 and January 13.