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UK Factory Confidence Plunges as Costs Jump: CBI Report

LONDON, April 23 (Reuters) - British manufacturers have turned their most pessimistic since the start of the ​COVID-19 pandemic due to the Iran ‌war and a measure of the expectations for inflation has surged, according to a survey published ​on Thursday.

The Confederation of British Industry ​also showed firms' investment plans for buildings, ⁠plant and machinery and training were ​the weakest since April 2020.

"Warning signs are ​flashing in this survey," Ben Jones, the CBI's senior lead economist, said. "It's clear that the war in ​the Middle East is contributing to rising ​uncertainty, with supply chains beginning to see some renewed ‌strain ⁠and cost pressures intensifying."

The survey's quarterly measure of optimism about the business outlook tumbled to -65 in April from -19 in January.

The CBI's ​monthly order ​book balance ⁠sank to -38 from -27 in March, falling further below its long-run ​average of -14.

The survey's gauge of expected ​prices ⁠jumped to +32 from +12 in March, representing the biggest month-to-month increase since records began in 1975.

The ⁠survey ​was based on responses ​from 276 manufacturers received between March 25 and April ​13.

Writing by William Schomberg, editing by Andy Bruce

Source: Reuters


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