Global Sentiment Slumps as Cost Pressures Mount and Outlook Dims.

April’s Manufacturing Snapshot: It’s Pretty Stagnant, but Some Cars Are on the Rise

According to the latest quarterly Industrial Trends Survey from the CBI, the big picture for factories in April is that nothing major changed—output stayed roughly the same. While almost every sub‑sector dipped a bit, the motor‑vehicle & transport equipment slice pulled its weight and pushed that whole picture up.

What’s Happening With Orders?

Domestic orders slumped for the quarter; new export orders fell a tad as well.
Looking ahead, both types of orders are expected to keep falling through July.
Half the factory owners flagged foreign politics or economics as the biggest roadblock to more export orders— the highest share since 2021.

Cost Pressures Are Heating Up

Costs are rising faster than a price‑watch‑storm. Average costs surged from January to April, and the outlook for further hikes stays solid.

Domestic prices are slated to jump faster in the next three months.
Export prices, however, seem to be holding steady.

Sentiment and Investment: Not a Bedrock

Feelings across the sector took a hit in April, and companies are treating investment like a cautious stroll on a rocky trail. They’re cutting back on:

New buildings and plant upgrades
Machinery, product and process innovation
Training and retraining – the weakest pillar since 2020.

Why? Demand uncertainty, thin net returns, and a noticeable labour shortage are all front‑and‑centre blockers.

Jobs Poised to Sink Further

Headcounts fell at the fastest pace since last October, and the trend is expected to continue into July.

Word from the Top

Ben Jones, Lead Economist at CBI, summed it up: “Manufacturers are feeling the heat of rising costs, a drop in new orders, and a shaky global economy. They’re pulling back on hiring and spending across the board.”

He also highlighted a growing challenge for exporters, noting that optimism about export prospects has dipped again, keeping order volumes near pandemic‑low levels.

Meanwhile, policymakers are urged to keep global trade open and focus domestic strategies on sparking growth and rewarding innovation—especially when labour costs and tariffs add to the business crunch.